Canara Bank Minimum Balance | Updated Charges & Rules

Key Takeaways
 

• Canara Bank has removed minimum balance requirements for all savings accounts from June 1, 2025, eliminating charges for low balances.
   
• This zero balance policy applies to every savings account category, including joint accounts, NRI accounts, senior citizen accounts, and student accounts.
   
• Savings accounts continue to earn the same interest as earlier. The removal of the balance requirement does not change the interest rate.
   
• Canara Bank positions itself as one of the most customer-friendly banks in India by removing these restrictions.

A minimum balance is the amount a bank expects you to keep in your account so you don’t get charged penalties. Banks set different minimum balance rules earlier based on whether your branch was in a metro, urban, semi-urban, or rural area. For example, a customer in a metro branch might have to maintain ₹2,000, while someone in a rural branch might need only ₹500.

But here’s the major shift. Canara Bank removed the minimum balance rule for all savings accounts from June 1, 2025.

So even if your account balance falls from ₹2,000 to ₹50, you will no longer be fined. This helps millions of customers who struggle to maintain monthly balances, especially students, pensioners, or people who use their accounts mainly for basic transactions.

This blog explains what the new rule means for you, how the earlier system worked, and why this change is considered a major step toward customer-friendly banking.

Minimum Balance Rules Before June 2025

Previously, Canara Bank had a tiered structure in which clients were required to maintain a specified Average Monthly Balance (AMB) based on whether they were in metro, semi-urban, or rural branches. 

This arrangement meant that your financial responsibilities varied according to where your branch was situated. Metro and urban account holders have to keep twice or even double the balance of rural consumers. 

Here are the minimum balance rules that existed before Canara Bank removed the requirement.
 

Read More - Bank of India Minimum Balance

These earlier rules often created pressure for customers who could not maintain the required balance every month.

For low-income earners, students, and seniors, even a penalty of ₹100-₹200 felt unjust. Many people struggled to keep their accounts in balance, particularly in rural regions where banking is largely utilised for basic transactions rather than keeping huge amounts of money.

What Changed in June 2025?

Canara Bank eliminated the minimum balance requirement for all types of savings accounts from June 1, 2025. That implies no penalties for non-maintenance, and you may maintain your balance as low as you prefer.

This applies to:

• Regular Savings Accounts
• Salary Accounts
• NRI Accounts
• Basic Savings Deposit Accounts (BSBDA)
• Senior Citizen Accounts

With this move, Canara Bank has made banking more customer-friendly and inclusive.

Why Did Canara Bank Remove the Minimum Balance Rule?

Several considerations affected this decision:

• Customer inclusivity: Penalties deterred many students, seniors, and rural customers.
• Zero balance feature: Private banks like HDFC and ICICI still need minimum balances of ₹3,000 to ₹10,000, making Canara Bank a more tempting option.
• Digital Banking Push: With more digital transactions, banks may earn more from service fees, making balance penalties less important for income.
• Government and RBI Encouragement: To encourage financial inclusion, particularly among rural and low-income households.

Canara Bank establishes itself as a forward-thinking, customer-focused organisation by eliminating balance restrictions

Types of Savings Accounts at Canara Bank

Canara Bank provides a variety of savings account categories, all of which now have zero balance perks. Here's a look at the Canara Bank savings accounts that no longer require a minimum balance.
 

Basic Savings Deposit Account

Zero balance, free debit card, limited ATM withdrawals

Junior / Payroll / Jeevan Dhara Accounts

Tailored for children, salaried individuals, and seniors

These alternatives demonstrate Canara Bank's commitment to making banking simple and accessible to everybody, whether you're a student, a salaried employee, or a retiree.

Also Read -  Minimum Balance Rule

How does this impact different Customers?