Union Bank Of India has joined the bandwagon of waiver of charges on non-maintenance of minimum balance in savings accounts.
“In alignment with the spirit of financial inclusion and customer centric banking, Union Bank of India now waives charges for non-maintenance of minimum balance in general savings accounts effective from Quarter ending September 2025,” the bank said in a statement.
This move is aimed at ensuring uniformity, fairness and enhance accessibility of basic banking services to customers. We are committed to supporting inclusive growth and believe this step will further strengthen our engagement with underserved segment of the population, said UBI.
The charges for non-maintenance of minimum balance are already waived in PMJDY accounts, Savings accounts of pensioners and senior citizens. However, the waiver is not applicable on other customized products of Savings Accounts.
Several banks including Bank of Baroda, State Bank of India (SBI), Indian Bank, Canara Bank, Bank of India and Punjab National Bank (PNB), have recently announced that the banks will no longer charge any penalty for not maintaining the Minimum Average Balance (MAB) in savings accounts. Earlier, the penalty amount depended on how much the account balance fell short of the required minimum.
What is Average Monthly Balance (AMB)?
Average Monthly Balance (AMB) is the average amount you need to keep in your savings or current account every month. Banks calculate this at the end of each month. If your balance falls below the required AMB, the bank may charge a penalty. The exact penalty depends on the type of account you have.
