Wed Jul 02 15:39:15 UTC 2025: ## News Article: Indian Banks Scrap Minimum Balance Fees in Push for Financial Inclusion
**Chennai/Hyderabad – July 2, 2025:** In a significant move towards financial inclusion, two major Indian banks, Indian Bank and Punjab National Bank (PNB), have announced the complete waiver of minimum balance charges across all savings bank accounts.
Indian Bank’s decision, effective July 7, 2025, aims to make banking more accessible and affordable for all sections of society. The move is expected to benefit a wide range of account holders, including students, senior citizens, small business owners, and rural customers. Indian Bank also announced a reduction of 5 basis points in its one-year marginal cost of funds-based lending rate (MCLR) to 9%, effective July 3, 2025, leading to lower interest rates on loans for borrowers.
Punjab National Bank also announced plans to waive penal charges for non-maintenance of minimum average balance (MAB) in all savings accounts beginning July 1. According to PNB, the measure is particularly aimed at supporting priority segments such as women, farmers, and low-income households, ensuring easier access to banking services without the burden of balance maintenance penalties. PNB Managing Director and CEO Ashok Chandra stated, “We believe waiving these charges will ease financial pressure on customers and encourage greater participation in the formal banking ecosystem.”
These decisions reflect a growing trend within the Indian banking sector to remove barriers to entry and promote greater financial participation, especially amongst underserved communities.
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