By a0amdn62263@outlook.com 
In a major move that will benefit millions of account holders, Punjab National Bank (PNB) has announced a complete waiver on penalties for not maintaining a Minimum Average Balance (MAB) in savings accounts. This means customers will no longer be charged if their account balance falls to zero.
The update brings PNB in line with banks like Canara Bank and State Bank of India (SBI), which already offer zero-balance account facilities.
Alongside this, PNB has also revised the interest rates on savings accounts, with both changes becoming effective from July 1, 2025.
✅ Zero Balance, No Penalty – Major Relief for Customers
According to the official statement,
“The waiver of non-maintenance charges for MAB is effective from July 1. The aim is to make banking services accessible and burden-free, especially for low-income families, women, and farmers.”
Previously, PNB imposed penalties based on account location and category:
| Area Type | Minimum Balance Requirement | Earlier Penalty Range |
|---|---|---|
| Rural | ₹1,000 | ₹50 – ₹100 |
| Semi-Urban | ₹2,000 | ₹75 – ₹200 |
| Urban | ₹5,000 | ₹100 – ₹300 |
| Metro Cities | ₹10,000 | ₹125 – ₹400 |
With the new policy, all these penalties have now been abolished.
📉 Interest Rates on Savings Accounts Revised
PNB has also made changes to its savings interest rates:
- For deposits up to ₹10 lakh, the interest rate has been reduced from 2.70% to 2.50% per annum.
- Deposits above ₹10 lakh up to ₹100 crore will now also earn 2.50%, down from previous rates.
- For balances of ₹100 crore or more, the interest rate is now 2.70%, instead of the earlier 3%.
💡 There is no change in Fixed Deposit (FD) interest rates.
📝 Summary
- No more MAB requirement or penalty for low balance.
- Interest rate cuts of up to 30 basis points (bps) on savings deposits.
- Changes effective from July 1, 2025.
- FD rates remain unchanged.
This move by PNB is aimed at encouraging inclusive banking and easing the financial burden on economically weaker sections of society.