Lok Sabha Question No. 2976 (UNSTARRED), answered on 2018-08-03
Subject: Maintaining Minimum Balance
Ministry: FINANCE
Asked by: Sarfaraz Alam, GOPALAKRISHNAN CHINNARAJ, ANIRUDHAN SAMPATH

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 2976

## Maintaining Minimum Balanee

TO BE ANSWERED ON 3rd AUGUST, 2018 (FRIDA YYSHRA VANA 12, 1940 (SAKA)

## 2976. SHRI SARFARAZ ALAM:

DR. C. GOPALAKRISHNAN:

DR. A SAMPATH:

Will the Minister of FINANCE be   pleased to state:

- (a) whether the banks have imposed several types of service   charges   penalties and restrictions on transactions made through the accounts. ATMs and credit cards and if so. the details thereof and the reasons therefor;
- whether the banks are also charging penalty for not maintaining the minimum balance in their accounts and if so, the details thereof and the reasons therefor:
- maintaining minimum balance the last three years and the current year bank-wise: during
- whether the Government of' India has any proposal to withdraw the additional charges charging to the customers by the nationalized banks, if so, the details thereof and if not; the reasons therefor; and
- whether the Government has any proposal to exempt the account holders   from charged for not maintaining the minimum balance and if so. the details thereof? being

## Answer

## The Minister of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

- (a) to (e) Reserve Bank of India (RBI) s Master Cireular on "Customer Service in Banks dated July 1 2015 provides that banks are permitted to fix service charges on various services rendered by them; as per their Board approved policy. while ensuring that the charges are reasonable and not out of' line with the average cost of" providing these services.

Service/miscellaneous charges are thus levied by banks as per the extant guidelines of

The RBI guidelines also provide that basic banking services through Basie Bank Deposit   (BSBD) accounts,   including accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) are provided without any charges and there is no requirement to maintain minimum balance in these accounts. Savings

Further; by end-December 2017, there were 53.3 crore BSBD accounts. ineluding 30.84 are n0 charges for maintaining the minimum balance.

As per latest information received from banks the details of charges colleeted by banks for not maintaining minimum balance the last four years is given in Annexure. during

| Annexure as referred to in reply to the Lok Sabha question no. 2976 for 3.8.2018 regarding   | Annexure as referred to in reply to the Lok Sabha question no. 2976 for 3.8.2018 regarding   | Annexure as referred to in reply to the Lok Sabha question no. 2976 for 3.8.2018 regarding                   | Annexure as referred to in reply to the Lok Sabha question no. 2976 for 3.8.2018 regarding                   | Annexure as referred to in reply to the Lok Sabha question no. 2976 for 3.8.2018 regarding                   | Annexure as referred to in reply to the Lok Sabha question no. 2976 for 3.8.2018 regarding                   |
|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                                                              | Name of the Bank                                                                             | Amount of charges colleeted for not maintaining minimum balance during the last four years (Amount in crore) | Amount of charges colleeted for not maintaining minimum balance during the last four years (Amount in crore) | Amount of charges colleeted for not maintaining minimum balance during the last four years (Amount in crore) | Amount of charges colleeted for not maintaining minimum balance during the last four years (Amount in crore) |
|                                                                                              |                                                                                              |                                                                                                              | 2015-16                                                                                                      | 2016-17                                                                                                      | 2017-18                                                                                                      |
| Major Private Sector Banks                                                                   | Major Private Sector Banks                                                                   | Major Private Sector Banks                                                                                   | Major Private Sector Banks                                                                                   | Major Private Sector Banks                                                                                   | Major Private Sector Banks                                                                                   |
|                                                                                              | Axis Bank                                                                                    | 409.59                                                                                                       | 360.66                                                                                                       | 409.66                                                                                                       | 530.12                                                                                                       |
| 2                                                                                            | HDFC Bank                                                                                    | 545.62                                                                                                       | 547.67                                                                                                       | 619.39                                                                                                       | 590.84                                                                                                       |
| 3                                                                                            | ICICI Bank                                                                                   | 350.77                                                                                                       | 326.6                                                                                                        | 352.23                                                                                                       | 317.6                                                                                                        |
| Public Sector Banks                                                                          | Public Sector Banks                                                                          | Public Sector Banks                                                                                          | Public Sector Banks                                                                                          | Public Sector Banks                                                                                          | Public Sector Banks                                                                                          |
|                                                                                              | Allahabad Bank                                                                               | 17.79                                                                                                        | 26.75                                                                                                        | 24.34                                                                                                        | 16.16                                                                                                        |
| 2                                                                                            | Andhra Bank                                                                                  | 51.89                                                                                                        | 48.08                                                                                                        | 48.02                                                                                                        | 48.42                                                                                                        |
| 3                                                                                            | Bank 0f Baroda                                                                               | 41.02                                                                                                        | 46.68                                                                                                        | 11.62                                                                                                        | 10.94                                                                                                        |
| 4                                                                                            | Bank of India                                                                                | 35.92                                                                                                        | 25.02                                                                                                        | 16.44                                                                                                        | 17,35                                                                                                        |
| 5                                                                                            | Bank of Maharashtra                                                                          | 72.61                                                                                                        | 93.18                                                                                                        | 50.54                                                                                                        | 19.17                                                                                                        |
| 6                                                                                            | Canara Bank                                                                                  | 121.87                                                                                                       | 133.27                                                                                                       | 128.24                                                                                                       |                                                                                                              |
| 7                                                                                            | Central Bank of India                                                                        | 54.06                                                                                                        | 55.54                                                                                                        | 56.58                                                                                                        | 173.92                                                                                                       |
| 8                                                                                            | Corporation Bank                                                                             | 27.01                                                                                                        | 37.91                                                                                                        | 38.91                                                                                                        | 24.29                                                                                                        |
| 9                                                                                            | Dena Bank                                                                                    |                                                                                                              | 11.84                                                                                                        | 14.15                                                                                                        | 18.25                                                                                                        |
| 10                                                                                           | IDBI Bank Ltd.                                                                               | NA                                                                                                           | 85.27                                                                                                        | 106.65                                                                                                       | 80.95                                                                                                        |
| 11                                                                                           | Indian Bank                                                                                  | 22.48                                                                                                        | 27.48                                                                                                        | 41.01                                                                                                        | 88.38                                                                                                        |
| 12                                                                                           | Indian Overseas Bank                                                                         | 61.14                                                                                                        | 54.25                                                                                                        | 87.95                                                                                                        | 41,95                                                                                                        |
| 13                                                                                           | Oriental Bank 0f Commerce                                                                    | 24.32                                                                                                        | 30.17                                                                                                        | 46.96                                                                                                        | 131.48                                                                                                       |
| 14                                                                                           | Punjab & Sind Bank                                                                           | 0.72                                                                                                         | 0.81                                                                                                         | 0.78                                                                                                         | 0.97                                                                                                         |
| 15                                                                                           | Punjab National Bank                                                                         | 107.9                                                                                                        | 116.49                                                                                                       | 164.22                                                                                                       | 210.76                                                                                                       |
| 16                                                                                           | State Bank of India ##                                                                       | nil                                                                                                          | nil                                                                                                          | nil                                                                                                          | 2433.87                                                                                                      |
| 17                                                                                           | Syndicate Bank                                                                               |                                                                                                              | 39.79                                                                                                        | 47.5                                                                                                         |                                                                                                              |
| 18                                                                                           | UCO Bank                                                                                     | 32.8                                                                                                         | 20.31                                                                                                        | 7.24                                                                                                         | 5,47                                                                                                         |
| 19                                                                                           | Union Bank of India                                                                          | 48.28                                                                                                        | 40.02                                                                                                        | 41.13                                                                                                        |                                                                                                              |

## Note: The   monthly average balance requirement was charged by SBL till 2012. Subsequently. SBL stopped charging for the same till 31.3.2016 while other banks. ineluding Private Banks were charging as per their Board-approved policy. It was reintroduced by SBI with effect from 1.4.2017. The minimum balance requirements were subsequently reduced with effect from 1.10.2017. It is also clarified that there is minimum balance requirement for Basic Savings Bank Deposit Accounts and Jan-Dhan accounts. nO

Source: Banks