NMMB stands for non-maintenance of minimum balance. This is a common charge that a customer needs to pay the bank if he fails to maintain a specific amount on average in the account. This minimum amount and the charge for not keeping it depend on the bank and the account type.
In this article, you’ll learn about Canara Bank’s regulations of NMMB charges. This will help you maintain the bank account’s average balance without paying any extra fees. Also, it will help you to understand how the charges are calculated. So, if you think you’re not supposed to pay a nmmb charge and there’s a miscalculation, you can figure that out too.
How NMMB Charge is Calculated in Canara Bank?
NMMB charges in Canara Bank are different for savings and current accounts. Let’s start with the savings account.
- For a savings account, the minimum amount you need to maintain is rupees 500 for rural areas, rupees 1000 for rural and semi-urban areas, and rupees 2000 for urban and metro areas.
- The mandatory minimum amount is the same whether your account is with or without a chequebook.
What if you fail to maintain this balance?
Well, for each type of area (rural, urban, metro) there are three types of amount slab.
- If your account is in a metro/urban branch and AMB lies between rupees 1999 to 1500, a charge of 25 rupees+GST has to be paid. If the balance amount lies between rupees 1499 to 1000, a charge of 35 rupees+GST will be marked. And if it is below 999 rupees, the NMMB charge will be 45 rupees+GST.
- For Canara bank branches in semi-urban areas, the nmmb charge is 25 rupees+GST if the minimum balance lies between rupees 999 to 700. If the amount is somewhere around 699 to 400 rupees, the charge is 35 rupees+GST. And, if the amount is below 399, the non-maintenance charge is 45 rupees+GST.
- Rural branches of Canara Bank charge 25 rupees+GST if the minimum balance is between 499 to 350 rupees. If the remaining balance is between 349 and 200 rupees, 35 rupees+GST will be charged. If your balance amount is below 199 rupees, then the NMMB charge will be 45 rupees+GST.
Minimum Balance Requirement in Canara Bank
| Area | AMB For Saving Account | AMB For Current Account |
|---|---|---|
| Rural | Rs. 500 | Rs. 1000 |
| Semi Urban | Rs. 1000 | Rs. 2000 |
| Urban | Rs. 2000 | Rs. 5000 |
| Metro | Rs. 2000 | Rs. 7500 |
NMMB Charges in Canara Bank Saving Account
Metro/Urban Branches
| AMB maintained in the account against the stipulated ₹ 2000 | Charges per month for violation of AMB |
|---|---|
| Rs 1999 to Rs 1500 | Rs 25+GST |
| Rs 1499 to Rs 1000 | Rs 35+GST |
| Rs 999 and below. | Rs 45+GST |
Semi Urban Branches
| AMB maintained in the account against the stipulated ₹ 1000 | Charges per month for violation of AMB |
|---|---|
| Rs 999 to Rs 700 | Rs 25+GST |
| Rs 699 to Rs 400 | Rs 35+GST |
| Rs 399 and below | Rs 45+GST |
Rural Branches
| AMB maintained in the account against the stipulated ₹ 500 | Charges per month for violation of AMB |
|---|---|
| Rs 499 to Rs 350 | Rs 25+GST |
| Rs 349 to Rs 200 | Rs 35+GST |
| Rs 199 and below | Rs 45+GST |
NMMB Charges in Canara Bank Current Account
| Charges of Non-Maintenance of Minimum Balance based on Average Monthly Balance
Applicable for all Branches |
|---|
| Rs 60+ GST per day. Maximum: Rs 500+ GST per calendar month. |
Note that AMB stands for average monthly balance. This means your minimum balance amount in Canara Bank should meet the criteria on an average basis. For example, your minimum balance is less than the required amount for a week. But for the rest of the days, the balance is more than the required amount— the bank will not mark an NMMB charge if the average balance amount is more than the required amount.
Now, let’s note the charges for the current account. The NMMB charges for this type of bank account are slightly high.
- If the account is in a rural area, you need to maintain 1000 rupees on average.
- If the account is in a semi-urban area, the mandatory minimum balance is 2000 rupees.
- For urban branches, the minimum balance is 5000 rupees.
- For metro branches, the minimum balance is 7500 rupees.
Coming to the Canara Bank NMMB charges for the current account, it’s 60 rupees+GST per day. This is applicable for each type of branch (rural, urban/semi-urban, metro). For one calendar month, this may go up to 500 rupees excluding GST.
Conclusion
This article includes all the details for each type of bank account in Canara Bank for NMMB charges. These details will help you to save the account from getting marked under non-maintenance charges. If you’re new to Canara Bank, make sure you note your branch falls under which area (urban, rural, metro) as the required AMB and NMMB charges will be different.