Indian Overseas Bank Removes Minimum Balance Charges on SB-Public Accounts

Indian Overseas Bank (IOB) has implemented a customer-friendly move by waiving penal charges linked to non-maintenance of Minimum Average Balance (MAB) for its SB-Public savings account scheme starting October 1, 2025. 

This relief measure aligns with IOB's broader initiative to simplify banking for general savings account holders, though other premium accounts remain subject to existing requirements.

Minimum Balance Charges Waived for SB-Public Accounts Only

Effective October 1, 2025, IOB customers holding the SB-Public savings account scheme will no longer face penal charges for failing to maintain a Minimum Average Balance. However, charges accrued until September 30, 2025, will still be applicable under the earlier rule structure. 

This decision is aimed at broadening financial accessibility for standard account holders and promoting ease of transaction banking.

No Impact on Premium and NRI Account Holders

While this change benefits SB-Public account holders, all premium savings accounts such as SB-MAX, SB-HNI, SB Prime, SB Priority, SB Privilege, NRI Elevate, NRI Privilege, and NRI Signature will continue under existing MAB norms. 

These accounts are designed for specific customer segments with enhanced features and privileges that necessitate higher maintenance thresholds.

Read More: ICICI Bank Gets GST Show Cause Notice of ₹216 Crore from Mumbai Tax Authority!

Previous Waivers on Specialised Schemes Continue

The bank had earlier made similar concessions on various account schemes, including PMJDY, BSBDA, Small Accounts, IOB SB Salary Package, IOB Sixty Plus, and IOB SB Pensioner Scheme. These waivers are in line with national financial inclusion initiatives and cater to segments where flexibility in maintaining balances is necessary.

Bank Overview and Recent Performance

Established in 1937 and nationalised in 1969, Indian Overseas Bank operates 3,345 branches with over 3,461 ATMs nationwide. For the quarter ending June 30, 2025, the bank reported total business worth ₹5,93,213 crore, an operating profit of ₹2,358 crore, and net profit of ₹1,111 crore, reflecting its steady financial outlook.

Conclusion

IOB’s move to remove MAB penalties for SB-Public accounts marks a positive shift towards improving customer satisfaction for standard account holders. While premium and NRI accounts maintain their existing rules, this development adds flexibility for the bank’s broader customer base.

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