Indian Bank, PNB drop minimum balance charges

Indian Bank has announced complete waiver of minimum balance charges across all savings bank accounts effective July 7. Effective July 1, Punjab National Bank, too, has decided to waive penal charges for non-maintenance of minimum average balance (MAB) in all savings accounts.

According to Indian Bank, the move is aimed at fostering financial inclusion and making banking more accessible and affordable for all sections of society.

The decision is set to benefit a vast spectrum of Indian Bank account holders, ranging from students and senior citizens to small business owners and rural customers. The waiver is expected to encourage more individuals, especially those from underserved communities, to enter the formal banking system, the lender said.

Indian Bank also announced a reduction of 5 basis points in its one-year marginal cost of funds-based lending rate (MCLR), bringing it down to 9%, effective July 3, 2025. This reduction will directly benefit borrowers with lower interest rate on loan, the lender said.

Supporting priority segments

Punjab National Bank’s move to waive penal charges for non-maintenance of minimum average balance (MAB) in all savings accounts is particularly aimed at supporting priority segments such as women, farmers and low-income households, ensuring easier and more inclusive access to banking services without the stress of balance maintenance penalties, PNB said in a release on Wednesday.

“We believe waiving these charges will ease financial pressure on customers and encourage greater participation in the formal banking ecosystem,” MD and CEO Ashok Chandra said.