Indian Bank Salary Account

Indian Bank

Indian Bank is one of India's oldest public sector banks, founded in 1907 and headquartered in Chennai. Following the April 1, 2020 amalgamation of Allahabad Bank into Indian Bank under the Government of India's PSU consolidation plan, the merged entity now operates 5,800+ branches and 5,000+ ATMs across India, with its strongest presence in Tamil Nadu, Andhra Pradesh, and the wider South Indian belt alongside a national PSU footprint. The Indian Bank Salary Account is a zero-balance salary account opened under a corporate tie-up between your employer and Indian Bank. The account earns 2.75% p.a. interest on the daily closing balance, which is the same rate Indian Bank pays on regular domestic savings deposits below ₹2 crore, in line with the RBI-mandated savings rate. There is no requirement to maintain any minimum average balance (MAB) — the MAB condition is waived for the entire duration that the salary credit is active, making the account a true zero-balance salary account as defined by RBI guidelines. Account holders receive a complimentary Indian Bank Salary Debit Card (RuPay) for ATM withdrawals, PoS purchases, and online transactions. NEFT and RTGS inward and outward transfers initiated through the IndOASIS mobile banking app or net banking are free of charge, with no per-transaction cap on the number of free transfers. The account also bundles a personal accident insurance cover and air accident cover, with the exact sum insured notified by Indian Bank at the time of issuance and at periodic corporate tie-up renewals. A key practical feature of the Indian Bank Salary Account is auto-conversion: if your employer stops crediting your salary into the account — typically for three consecutive months — Indian Bank automatically converts it into a standard Indian Bank Savings Account at the prevailing MAB and savings rate, rather than freezing the account. This protects your account number, UPI ID, and standing instructions from disruption. You can also apply for a salary overdraft against expected monthly credits, subject to bank eligibility and employer tie-up terms. Account opening is routed through your employer's HR when Indian Bank is the approved salary banker, or you can apply directly at any Indian Bank branch with your appointment letter, salary slip, Aadhaar, PAN, and a photograph. Existing Indian Bank customers can map a regular savings account into the salary programme after their employer's HR initiates the corporate tie-up. The IndOASIS app handles most day-to-day needs including UPI, IMPS, bill payments, FD/RD booking, and credit-card bill pay. Source: Indian Bank official website, updated May 2026.