Public sector bank Union Bank of India on Friday announced waiving penalty charges for not maintaining the minimum balance amount in general savings accounts. The direction is effective from the quarter ending September 2025.
“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 the quarter ending September 2025,” the bank said in a statement.
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With this move, Union Bank of India is looking at ensuring uniformity and fairness and enhancing accessibility of basic banking services to customers.
Minimum balance requirement already removed for PMJDY accounts, pensioners, and senior citizens
“We are committed to supporting inclusive growth and believe this step will further strengthen our engagement with the underserved segment of the population. Hitherto, the charges for non-maintenance of minimum balance are already waived in PMJDY accounts and savings accounts of pensioners and senior citizens,” it said.
Waiver not applicable for customized products of savings accounts
However, the waiver does not apply to other customised products of savings accounts, the bank added.
In the last couple of months, several other banks, like Bank of India, Indian Bank, Punjab National Bank, and Canara Bank, announced such waivers for their savings account customers.
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These waivers by banks to customers for not maintaining the minimum balance in savings accounts assume significance since the government recently nudged public sector banks to look for ways to mobilise deposits and add more customers. These banks were told by the government to onboard new customers and make them invest in government-sponsored schemes, for which these savings accounts with zero penalty for non-maintenance of minimum balance would be helpful.
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