No More Penalty for Zero Balance: Indian Bank's Customer-Friendly Move

Great news for customers! Indian Bank has waived the minimum balance maintenance fee (AMB) for bank accounts. Now you can maintain accounts with zero balance.

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Minimum Balance in Bank

People are changing with the times. Opening a new bank account is encouraged for safekeeping of money. People trust this and open accounts. But if they withdraw all their money for essential needs, the bank imposes penalties, leading to negative balances for many.

Minimum balance penalties in banks severely impact the poor and middle class. Many have multiple accounts but can't maintain minimum balances in all, leading to penalties and added financial burden.

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Rs. 2,331 crore collected as penalty

Banks charge penalties for accounts without minimum balance. In 2024 alone, Rs. 2,331 crore was collected as penalties in India, a 25% increase from the previous year, further burdening the poor and middle class.

Despite RBI guidelines against penalizing inactive accounts for over two years, some banks violate this, demanding penalties before account closure.

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Indian Bank's net profit is 2973 crores

Amidst public struggles, Indian Bank brings good news. At the Chennai headquarters, MD Binodkumar discussed the bank's June 30 quarterly performance. Net profit reached Rs. 2,973 crore, a 23.69% year-on-year increase. Net interest income stood at Rs. 6,359 crore, up 2.93%.

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Zero Balance - No Penalty

He further stated loans worth Rs. 363,221 crore were disbursed for agriculture, small businesses, etc. UPI users increased to 2.29 crore, and net banking users also rose. Tamil Nadu has 1,098 Indian Bank branches (19.1% of total branches), the highest in India. He announced the end of account maintenance penalties, allowing zero balance accounts, a welcome relief for customers.