Banks Eliminate Minimum Balance Charges for Savings Accounts

In a significant move, six major banks, including SBI and Bank of Baroda, have abolished minimum balance charges for savings accounts. This decision allows customers to maintain their accounts without the worry of incurring fees, even if their balance is low. The changes reflect a response to evolving market conditions and aim to enhance financial flexibility for account holders. With this new policy, customers can enjoy greater peace of mind regarding their banking services. Read on to learn more about which banks are involved and the implications of this decision.

By Narendra Chaudhary Apr 21, 2026, 16:08 IST

No More Minimum Balance Fees

Many individuals often face issues when their bank accounts have insufficient funds, leading to average minimum balance charges being deducted. However, customers with savings accounts can now breathe a sigh of relief.

Recently, six major banks, including SBI, have completely abolished the charges associated with maintaining an average monthly balance.

This means that even if your account has no funds, the bank will not impose any charges. Bank of Baroda, for instance, has removed the charges for not meeting minimum balance requirements on all standard savings accounts. However, this exemption does not apply to premium savings account schemes.

Indian Bank has also announced the complete removal of minimum balance charges. Canara Bank had already made this decision back in May. Similarly, PNB and SBI have relieved their customers by eliminating minimum average balance charges across all types of savings accounts.

In addition, Bank of India has decided not to charge customers for failing to meet minimum balance requirements. This change is aimed at adapting to the evolving market conditions and enhancing financial flexibility.