Indian Bank Waives Off Minimum Balance Charges On Savings Accounts; Reduces MCLR to 9%

Indian Bank customer will not have to pay penalty on going below minimum balance across all Savings Bank accounts effective 7 July 2025.

New Delhi: After Punjab National Bank, another PSU lender Indian Bank has announced waiver of minimum balance charges across all Savings Bank accounts.

"Indian Bank has announced the complete waiver of minimum balance charges across all Savings Bank accounts, effective July 7, 2025. This move is aimed at fostering financial inclusion and making banking more accessible and affordable for all sections of society," the bank said in a statement.

This move 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 bank added.

Indian Bank has also announced a reduction of 5 basis points in its one-year Marginal Cost of Funds Based Lending Rate (MCLR), bringing it down to 9.00%, effective July 3, 2025. This reduction will directly benefit borrowers with lower interest rate on loan.

Punjab National Bank Waives MAB Penalty

Punjab National Bank (PNB) has waived penal charges for non-maintenance of Minimum Average Balance (MAB) in all savings accounts, the bank said in a statement.

"This customer-first initiative, effective from July 1, 2025, 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.