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Similar waivers have been implemented earlier by SBI, Canara Bank, PNB, Indian Bank, and Bank of Baroda, however, the bank clarified that this waiver does not apply to customized savings products.
In a significant move toward financial inclusion and customer-friendly banking, Union Bank of India has announced a complete waiver of charges for non-maintenance of minimum balance in its general savings accounts. This change, effective from the September 2025 quarter-end, is aimed at making banking services more accessible to millions of customers, especially those from underserved and rural segments.
This strategic decision ensures that customers with general savings accounts can continue using banking services without the burden of maintaining a minimum balance, thereby encouraging more people to participate in the formal banking system. However, the bank clarified that the waiver does not apply to customized savings products, which will continue to follow their existing terms and conditions.
Union Bank joins the ranks of other major public sector banks like State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Indian Bank, and Bank of Baroda, all of which have already implemented similar waivers. This industry-wide trend reflects a growing emphasis on inclusive banking, helping customers who may struggle with maintaining average monthly balances.
According to Union Bank, this step will enhance financial accessibility, promote savings, and strengthen relationships with customers by removing barriers that often discourage low-income individuals from opening or maintaining bank accounts.
Experts see this move as aligned with India’s larger digital financial inclusion mission, ensuring that banking remains affordable, fair, and customer-centric. By eliminating minimum balance penalties, Union Bank is making a strong push toward expanding its customer base, particularly in rural and semi-urban regions, where financial inclusion remains a key priority.
This decision is expected to boost customer satisfaction, encourage active banking participation, and support India’s vision of universal access to banking services.
This strategic decision ensures that customers with general savings accounts can continue using banking services without the burden of maintaining a minimum balance, thereby encouraging more people to participate in the formal banking system. However, the bank clarified that the waiver does not apply to customized savings products, which will continue to follow their existing terms and conditions.
Union Bank joins the ranks of other major public sector banks like State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Indian Bank, and Bank of Baroda, all of which have already implemented similar waivers. This industry-wide trend reflects a growing emphasis on inclusive banking, helping customers who may struggle with maintaining average monthly balances.
According to Union Bank, this step will enhance financial accessibility, promote savings, and strengthen relationships with customers by removing barriers that often discourage low-income individuals from opening or maintaining bank accounts.
Experts see this move as aligned with India’s larger digital financial inclusion mission, ensuring that banking remains affordable, fair, and customer-centric. By eliminating minimum balance penalties, Union Bank is making a strong push toward expanding its customer base, particularly in rural and semi-urban regions, where financial inclusion remains a key priority.
This decision is expected to boost customer satisfaction, encourage active banking participation, and support India’s vision of universal access to banking services.
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