With this move, Canara Bank becomes the first major public sector bank to completely do away with AMB-related penalties across all account categories.
The decision aims to make banking more inclusive and customer-friendly.
The Average Monthly Balance (AMB) is the minimum amount a customer must maintain in their account each month. Banks calculate AMB by taking the average of the closing balances in the account every day over a month. If the average falls below a set limit, banks typically charge a penalty. This amount varies depending on the type of account and its location—urban, semi-urban, or rural.
Until now, Canara Bank customers had to maintain specific minimum balances depending on their account type. If they failed to do so, the bank charged a fee.
However, Canara Bank customer will now not face charges for failing to maintain a minimum balance in their SB account.
This move is expected to benefit millions of customers, including salaried individuals, students, senior citizens, NRIs, and others who may not always keep high balances in their accounts. The bank said the goal is to offer a hassle-free banking experience and promote financial inclusion.
Canara Bank, founded in 1906 in Mangalore by Ammembal Subba Rao Pai, is one of India’s oldest public sector banks.
As of March 31, 2025, the bank has 9,849 branches across India, including 3,139 in rural areas, and operates 9,579 ATMs. It also has international branches in London, New York, Dubai, and GIFT City.
