Canara Bank recently implemented significant changes impacting a large number of customers. As a result, it has become one of the most searched topics on Google this week
The following changes have been implemented by Canara Bank:
- No minimum balance or penalties on saving accounts – Before, customers had to maintain the minimum average monthly balance (AMB) for all savings account types – including regular, salary, NRI, senior citizen, and student accounts. For example, urban branches required an AMB of ₹2,000, while semi-urban and rural branches required ₹1,000 and ₹500, respectively.
But starting from June 1, 2025, this rule has been removed. Now, there’s no penalty if your balance goes below these amounts. This is great news, especially for people who struggle to keep money in their accounts. It makes banking easier and more accessible for everyone.
2. Loan interest rates reduced
In May 2025, the bank reduced its MCLR ( the rate that affects loan interest) across various tenures, making home and retail loans more affordable. This means: loan interest rates went down. So, EMIs (monthly payments) became cheaper. It became easier and more affordable to borrow money from Canara Bank.
Here’s a simple explanation of the new MCLR rates from Canara Bank, effective June 12, 2025:
| Loan Period (Tenor) | New Interest Rate (MCLR) |
|---|---|
| Overnight (1 day) | 8.00% |
| 1 month | 8.05% |
| 3 months | 8.25% |
| 6 months | 8.60% |
| 1 year | 8.80% |
| 2 years | 8.95% |
| 3 years | 9.00% |
3) FD interest rates also changed
-
Canara Bank lowered the fixed deposit (FD) interest rates for deposits less than ₹3 crore.
-
For regular customers, FD rates are now between 4% to 7%, and for senior citizens, between 4% to 7.5%. These rates were slightly higher in April 2025, so this might be a bit disappointing for those who invested in FDs in April.
These changes have captured public attention and many people started searching about Canara Bank on Google. This made a trending topic on Google this week.
