Banks Collected ₹26,100 Crore in Minimum Balance Penalties Over Four Years

Banks across India have collected nearly ₹26,100 crore in penalties from customers over the past four financial years for failing to maintain the required minimum balance in their savings accounts.

The information was shared by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha while responding to a question regarding the penalties imposed by banks.

The Minister stated that, to improve customer-friendly banking services, 10 out of the 12 public sector banks have completely stopped charging penalties for customers who fail to maintain the minimum balance. The remaining two public sector banks have revised and reduced their penalty charges.

He also clarified that customers holding Basic Savings Bank Deposit Accounts (BSBDA) are not required to maintain a minimum balance and, therefore, no penalties are levied on these accounts.

According to the data presented in Parliament, banks have collected approximately ₹26,100 crore in minimum balance penalties from customers during the last four financial years. The government`s move to encourage public sector banks to reduce or eliminate such charges is aimed at making banking services more accessible and customer-friendly.