New Delhi: Private and public sector banks together collected close to Rs 19,000 crore from customers for failing to maintain the required minimum balance in their accounts over the last three financial years, from 2022-23 to 2024-25.
According to information shared by the finance ministry in the Lok Sabha on Monday, private sector banks accounted for the larger share, gathering around Rs 11,000 crore during the period. Public sector banks reported collections of Rs 8,093 crore.
Among private lenders, HDFC Bank recorded the highest amount of such charges at Rs 3,872 crore, followed by Axis Bank. In the public sector category, Punjab National Bank (PNB) collected the most.
India’s largest lender, State Bank of India (SBI), discontinued penalties for not maintaining the required balance in savings accounts in March 2020. Following this move, nine other public sector banks, including PNB and Canara Bank, also eliminated such charges for savings accounts last year, while two more lenders have reduced the penalty amounts. However, private banks continue to levy these charges.
In a written reply to Parliament, Finance Minister Nirmala Sitharaman said the Rs 8,092.8 crore collected by public sector banks during the three-year period represents only about 0.2 per cent of their total income. She noted that the charges are largely meant to cover the operational costs of banking services rather than to generate significant revenue.
The minister also highlighted that about 72 crore Basic Savings Bank Deposit Accounts (BSBDAs), including those opened under the Pradhan Mantri Jan Dhan Yojana, are exempt from such penalties. These zero-balance accounts are aimed at expanding access to banking services for unbanked and vulnerable sections of society while supporting financial inclusion.