Key Highlights:
- Union Bank ends minimum balance penalty for standard savings accounts.
- New rule to apply from the quarter ending September 2025.
- SBI, Canara Bank, BoB, and Indian Bank have already made similar moves.
Mumbai: If you have a savings account in Union Bank of India, here’s good news! The bank has announced that there will no longer be any penalty for not maintaining the minimum balance in regular savings accounts.
When Will This Start?
This new rule will start from the quarter ending September 2025, according to the bank’s press release.
Why Has the Bank Taken This Step?
Union Bank said the goal is to help more people join the banking system. Now, account holders won't have to worry about penalties if they don’t keep a minimum balance in their accounts.
Who Will Get This Benefit?
This rule will apply only to regular savings accounts. If you have a customized or special savings account product, this rule may not apply to you.
Other Banks That Removed Minimum Balance Penalties:
SBI (State Bank of India)
Removed minimum balance rule in 2020 for all savings accounts. No penalty now for low balance.
Canara Bank
In May 2025, Canara Bank removed the average monthly balance requirement for regular, salary, and NRI savings accounts.
Bank of Baroda (BoB)
From July 1, 2025, no minimum balance charge for standard savings accounts. This doesn’t apply to premium account holders.
Indian Bank
From July 7, 2025, no charges for not keeping a minimum balance in any savings account.
What is Minimum Average Balance (MAB)?
Minimum Average Balance is the average amount of money you need to keep in your account every month. It helps banks maintain your account and provide services. Removing this rule gives more freedom and convenience to customers, especially in rural and low-income areas.
