What’s New?
Indian Bank and Punjab National Bank (PNB) have stopped charging penalties if customers don’t keep a minimum amount in their savings accounts. These changes began in early July 2025:
- PNB removed the minimum balance requirement starting July 1.
- Indian Bank followed on July 7.
Who Benefits?
This move is helpful for:
- Students
- Senior citizens
- Small shop owners
- Rural families
- Women, farmers, and low-income customers
Basically, anyone who found it hard to maintain the minimum balance will no longer have to worry about extra fees.
Why Is This Important?
- It makes banking easier and more affordable for more people, especially those from villages or low-income families.
- The banks hope that with these changes, more people will be encouraged to open and use bank accounts.
- This is part of a larger effort to help more Indians join the formal banking system.
Extra Good News for Borrowers
Along with removing these penalties, Indian Bank has also cut its main loan interest rate (one-year MCLR) by a small amount. From July 3, 2025, the rate is now 9%. This means new loans could cost a little less, helping customers save money over time.
What the Banks Say
- PNB’s CEO, Ashok Chandra, mentioned that removing these charges will make life easier for customers and encourage more people to use banking services.
- The change is seen as a positive step to support financial inclusion, meaning everyone—no matter their background—can access banking easily.
The Bottom Line
By ending these charges, both banks aim to support their customers and help bring millions more people into the banking system. It’s a major step towards making banking fair and accessible for everyone.