Indian Bank Waives Minimum Balance Charges on Savings Account from July 2025, Follows Canara Bank and PNB

Indian Bank will no longer charge customers for not maintaining a minimum balance in their savings accounts. This change takes effect from July 7, 2025. The decision applies to all savings account holders across the bank’s network. This move follows Canara Bank and PNB, which recently announced penal charges for non-maintenance of minimum average balance (MAB) in all savings accounts.

The waiver covers a wide range of customers, including students, senior citizens, rural users, and small business owners. The bank said this step aims to make basic banking more accessible. It also removes penalties that many account holders previously faced.

MCLR Reduced to 9%

In a separate move, Indian Bank has lowered its one-year Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points. The revised rate is 9% and will be effective from July 3, 2025. The one-year MCLR is the benchmark for most loans offered by the bank.

The MCLR is used to determine interest rates for loans such as home, auto, personal, and education loans. A cut in MCLR typically lowers the cost of borrowing for customers. The reduction will apply to both new and existing loans linked to this benchmark.

MCLR was introduced by the Reserve Bank of India in 2016. It is the minimum lending rate below which banks are not allowed to lend, except in specific cases. It is calculated based on the bank’s cost of funds, operating expenses, and loan tenor.

Part of Routine Adjustments

Indian Bank’s changes follow similar adjustments made by other public sector banks in recent months. Such changes are often made in response to evolving market conditions and regulatory guidance.

Read More: PNB Removes Minimum Balance Requirement in Savings Accounts from July 1, 2025! 

Indian Bank Share Price Performance 

As of 10:06 AM on July 3, 2025, Indian Bank share price was at ₹650.77, a 0.007% increase. The stock is up 15.92% over the past 6 months and 43.34% over the past year.

Conclusion

Starting July 2025, Indian Bank customers will see 2 updates, no minimum balance charges and a slight cut in lending rates. Both changes are set to take effect in the first week of the month.

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