Dussehra special offer Indian Overseas Bank waives minimum balance charges for savings account holders

Public sector lender Indian Overseas Bank (IOB) has given a festive gift to its crores of customers by announcing a waiver on penalty charges for not maintaining the Minimum Sverage Balance (MAB) in savings accounts. The decision, which comes into effect immediately, is aimed at simplifying the banking experience and reducing unnecessary financial burden on account holders, news agency PTI reported. According to the bank, the step reflects its customer-centric approach and commitment to financial inclusion.

IOB highlighted that it had already waived minimum balance requirements for several special schemes, including IOB Sixty Plus, IOB Savings Bank Pensioner, Small Accounts and IOB Savings Bank Salary Package.

Commenting on the development, IOB Managing Director and CEO Ajay Kumar Srivastava said, “We are delighted to announce this waiver which will provide significant relief to our account holders. Our goal is to make banking more convenient and hassle-free for our customers.”

Key highlights of the decision

• What is waived: Penalty on savings accounts (public schemes) for not maintaining the minimum average balance.
• Effective date: The waiver has been implemented with immediate effect.
• Past charges: The bank clarified that penalty already levied till September 30, 2025, will remain applicable under existing rules.

Relief for common customers

The move will especially benefit those account holders who, due to financial stress or oversight, often fail to maintain the minimum balance in their accounts and are forced to pay penalty charges. With this relief, IOB has eased a major concern for its large base of savings account customers.

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