Banks collected Rs 26,170 crore in minimum balance charges over FY23-FY26: Govt
Banks collected more than Rs 26,170 crore from customers as penalties for failing to maintain the minimum average balance (MAB) in their accounts during the four financial years from FY23 to FY26, as per the data shared by the government in the Parliament.
IANS
Jul 29, 2026 01:25
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New Delhi, July 29 (IANS) Banks collected more than Rs 26,170 crore from customers as penalties for failing to maintain the minimum average balance (MAB) in their accounts during the four financial years from FY23 to FY26, as per the data shared by the government in the Parliament.
The data -- provided by Minister of State for Finance Pankaj Chaudhary in a written reply in the Rajya Sabha -- showed that private sector banks accounted for a larger share of these collections compared with public sector banks (PSBs).
In FY26 alone, banks collected Rs 7,086.63 crore through minimum balance charges.
Meanwhile, private lenders accounted for Rs 4,948.71 crore, more than twice the Rs 2,137.92 crore collected by PSBs.
Among private banks, HDFC Bank reported the highest collection from minimum balance charges in FY26 at Rs 1,798.14 crore, followed by Axis Bank at Rs 1,081.33 crore. Together, the two lenders accounted for nearly 58 per cent of the total minimum balance charges collected by private sector banks during the year.
Other private lenders that reported collections included ICICI Bank at Rs 353.50 crore, Kotak Mahindra Bank at Rs 290.65 crore, Yes Bank at Rs 195.05 crore and IDBI Bank at Rs 175.15 crore.
Among public sector lenders, State Bank of India (SBI) reported the highest collection at Rs 477.27 crore, followed by Bank of Baroda at Rs 394.10 crore and Indian Bank at Rs 299.17 crore.
However, the government clarified that SBI's figure relates to current accounts, as the bank has waived minimum balance penalties on savings accounts since March 2020.
Public sector banks have significantly reduced such charges in recent years, according to the government.
Of the 12 PSBs, 10 have discontinued penal charges for non-maintenance of minimum average balance in savings accounts, while the remaining two have rationalised them in line with their board-approved policies and commercial considerations, it added.
The Finance Ministry reiterated that Basic Savings Bank Deposit Accounts (BSBDAs), including accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), are exempt from minimum balance requirements. Around 73 crore BSBDAs currently do not attract any penalty for non-maintenance of balance.
--IANS
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