Indian Overseas Bank Waives Minimum Balance Charges For Some Savings Accounts
Indian Overseas Bank (IOB) on Tuesday announced a waiver of penal charges for non-maintenance of Minimum Average Balance in its Saving Account (SB-Public). The waiver will be applicable frosm Oct. 1, 2025. The charges for the period up to Sept. 30, including for any shortfall will continue and will be charges as per the existing rules, the bank said in a press release. The decision is aimed at offering relief to customers and making the banking experience easier.
The bank has already waived minimum balance charges for schemes like Pradhan Mantri Jan-Dhan Yojana, Basic Savings Bank Deposit Account, Small Accounts, IOB SB Salary Package, IOB Sixty Plus, IOB SB Pensioner Scheme, and IOB SB Govt. Account.
"We are very happy to announce this waiver, which will provide significant relief to our account holders," said Ajay Kumar Srivastava, Managing Director & CEO, IOB.
However, the penalty for not maintaining minimum balance will continue for the premium savings account scheme of the bank. The premium savings account that will continue to charge for not maintaining minimum average balance include SB-MAX, SB-HNI, SB Prime, SB Priority, SB Privilege, NRI Elevate, NRI Privilege, and NRI Signature.
Among other news for the day, the Reserve Bank of India (RBI) on Tuesday said it has imposed a penalty of Rs 31.8 lakh on IOB for non-compliance with certain directions on ‘Priority Sector Lending (PSL) – Targets and Classification'.
Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a show cause notice was issued to the bank.
IOB collected loan-related charges in certain PSL accounts, each having sanctioned loan of up to Rs 25,000. The RBI, however added that penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Indian Overseas Bank Share Price Today
The business update was shared after market hours. The stock settled 2.67% higher at Rs 39.54 apiece on the NSE, compared to a 0.10% decline in the benchmark Nifty 50. The shares earlier during the day rose as much as 3.19% to Rs 39.74 per share.
IOB shares have fallen 31.51% in the last 12 months and 23.61% year-to-date.
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