Good news for PNB customers! No more penalty if you can't maintain minimum savings account balance — What this means

Good news PNB customers! The Punjab National Bank has decided to waive off the penal charges on its customers if they do not maintain the Minimum Average Balance (MAB) in savings accounts, the lender announced on July 1.

The new PNB rule has become effective from July 1 and applies to all savings account.

“With effect from 01st July, 2025, enjoy hassle-free banking without any penal charges on non-maintenance of minimum average balance across all Savings Account schemes,” the lender said in a post on X.

It also released a statement, confirming the development.

What has changed?

Like most other lenders, PNB also used to levy certain amounts of penalties from its customers if they did not maintain the minimum account balance.

However, starting for July 1, the bank is no longer charging a fee for non-maintenance of MAB in any PNB savings account. This waiver applies across all customer segments and locations.

What were the earlier rates?

PNB used to charge different rates for different types of savings accounts. The rates also varied from the location where a bank account was opened — rural, semi-urban, and urban and metro.

The penalty for non-maintenance of PNB savings account minimum balance ranged between ₹10 and ₹2,000, according to the website of the PSU bank.

Why is PNB waiving of penalty?

The latest move of waiving penalties on non-maintenance of account balance comes as a bid to strengthen financial inclusion and customer empowerment.

“This decision reflects our unwavering commitment to inclusive banking. We believe that waiving these charges will ease financial pressure on customers and encourage greater participation in the formal banking ecosystem,” said PNB MD & CEO Ashok Chandra.

The move comes at a time when the Reserve Bank of India (RBI) is batting for greater financial inclusivity in the recent years, urging lenders to implement measures that ensure simpler and smoother banking.

Who will benefit?

The new PNB savings account rule is especially aimed at supporting priority segments, including 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 statement on Tuesday.

“With this step, PNB reaffirms its role as a socially responsible and customer-centric institution, dedicated to making banking more accessible and equitable for all,” it added.