Lok Sabha Question No. 8 (STARRED), answered on 2018-02-02
Subject: Minimum Account Balance
Ministry: FINANCE
Asked by: ABHISHEK SINGH

Government of India Ministry of Finance

## LOK SABHA

## Department of Financial Services

Starred Question No. *8

To be answered on 2 February 2018 (FRIDA YYMagha 13,1939 (Saka)

## Minimum Account Balance

## *8. SHRI ABHISHEK SINGH:

Will the Minister of FINANCE be pleased to state:

- the details of the norms and guidelines regarding penalty charges for non-maintenance of minimum balance in bank accounts;
- the amount of penalty collected by penalising people for not maintaining minimum balance in their account the last one year; banklaccount-wise; during
- whether the Government is aware that Minimum Account Balance (MAB) penalties demotivates lower and middle class people for payment through bank accounts and if the action taken thereon; and SO,
- whether various irrational extra  charges for basic services like issuance of cheque books etc. are levied by banks and if SO, the action taken by the Government to address the issue? being

## Answer THE FINANCE MINISTER

## (SHRI ARUN JAITLEY)

(a) to (d) A Statement is laid on the Table of the House\_

*****

Statement referred t0 in reply to (a) to (d) of Lok Sabha Starred Question No: *8 Position) for 2 February 2018 by Shri Abhishek  Singh,  regarding "Minimum Account Balance"\_ parts (8t

- (a) According to   Reserve Bank banks do not   have any Minimum Balance requirement for Basic Savings Bank Deposit accounts (BSBD) including accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) In September 2017, there were 52.2 crore BSBD accounts including 30.31 crore Jan-Dhan accounts. Hence, for these accounts there are no charges for not maintaining minimum balance.

For other savings accounts, banks are allowed to decide the policy on of charges on non-maintenance of minimum balances with the approval of their Boards. Banks have to ensure that such charges are reasonable and in line with the average cost of providing the services. levy

- (b The information in respect of requirement of quarterly average balance and respective charges for non-maintaining the same for accounts other than BSBD/Jan-Dhan accounts by Public Sector Banks (PSBs) and major private  sector banks is shown in Annexure. The requirement of minimum average seen to be   comparatively lower: Further; the rate of such charges is generally lower in case of rural and semi-urban areas as compared to the urban and metro areas

The amount of charges collected by Public Sector Banks (PSBs) for not maintaining minimum balance in savings accounts during financial year 2016-17 and 2017-18 (April to November; 2017) is also given at Annexure.

- As stated in (a) above BSBD accounts and accounts opened under PMJDY do not have minimum balance requirement: People can use the above kinds of account to avoid maintaining minimum balance in their accounts.
- (d) As per RBI Master Circular dated 1.7.2014 o customer service in banks, the banks may decide on service charges, with approval of their Board of Directors. While service  charges   for various types of services, banks are to ensure are reasonable and are in line with the average cost of providing these services: Banks also have to ensure that customers   with low volume of activities are not penalised. However, most banks provide several free basic services to customers aS per their Board-approved policies. prior fixing

Minimum balance charges in individual savings bank accounts (other than BSBD account)

|                         |                                     | With cheque book                                                 | With cheque book                                                 | With cheque book                                                 | With cheque book                                                 | With cheque book                                                 | With cheque book                                                 | With cheque book                                                 | With cheque book                                                 | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              | Without cheque book                                              |                                                                  |
|-------------------------|-------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
|                         |                                     | Quarterly average balance                                        | Quarterly average balance                                        | Quarterly average balance                                        |                                                                  |                                                                  | Charges                                                          | Charges                                                          | Charges                                                          |                                                                  |                                                                  | Quarterly average balance                                        | Quarterly average balance                                        |                                                                  |                                                                  |                                                                  | Charges                                                          |                                                                  |                                                                  |
|                         | Bank                                |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 2                                                                |                                                                  |                                                                  | 1                                                                |                                                                  |                                                                  |                                                                  | 1                                                                | mainlenance of minimum balance minmum balance (amount in Rs      | mainlenance of minimum balance minmum balance (amount in Rs      |
|                         |                                     | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks | 2016-[7 2017-18 (up t0 November 2017) Major Private Sector Banks |
|                         | Axls Bank"                          | 2500                                                             |                                                                  |                                                                  |                                                                  | 250                                                              | 250                                                              | 350                                                              |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 250                                                              | 250                                                              | 350                                                              | 350                                                              | Not available                                                    | Not available                                                    |
|                         | HDFC Bank "                         | 2500                                                             |                                                                  |                                                                  |                                                                  | 3001                                                             | 3001                                                             | 600                                                              | 600                                                              | 5000                                                             |                                                                  |                                                                  |                                                                  | 300                                                              | 300                                                              |                                                                  | 600                                                              | Not available                                                    | Not available                                                    |
|                         |                                     | 2000                                                             |                                                                  |                                                                  |                                                                  | 100                                                              |                                                                  | 500                                                              | 500                                                              | 2000                                                             |                                                                  | 5o00| 10000| 10000                                     |                                                                  |                                                                  |                                                                  | 500                                                              |                                                                  | Not avallable                                                    | Not avallable                                                    |
| All Public Sector Banks | All Public Sector Banks             | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          | All Public Sector Banks                                          |
|                         | Allahabad Bank                      |                                                                  |                                                                  | 1000                                                             | 1000                                                             | 102                                                              | 102                                                              | 143                                                              | 143                                                              | 100                                                              | 100                                                              |                                                                  |                                                                  | 36                                                               | 36                                                               |                                                                  |                                                                  |                                                                  | 7.69 (up t0 25.12.2017)                                          |
|                         | Andhra Bank"                        |                                                                  | 250                                                              | 500                                                              |                                                                  | 50                                                               |                                                                  |                                                                  | 100                                                              |                                                                  | 250                                                              | 2501                                                             | 2501                                                             |                                                                  |                                                                  | 100                                                              | 100                                                              | 48,02                                                            | 24.28 (up to 30.9.2017)                                          |
|                         | Bank of Baroda                      |                                                                  |                                                                  | 1000                                                             |                                                                  | 100                                                              | 100                                                              |                                                                  |                                                                  |                                                                  |                                                                  | 1000                                                             |                                                                  | 100                                                              |                                                                  | 200                                                              |                                                                  | 13.48                                                            |                                                                  |
|                         | (Bank of India                      |                                                                  |                                                                  | 5C0                                                              |                                                                  | 54                                                               | 54                                                               | 54                                                               | 54                                                               | 100                                                              |                                                                  | 1C0                                                              | 100                                                              | 40                                                               |                                                                  |                                                                  | 40                                                               |                                                                  |                                                                  |
|                         | Bank of Maharashtra                 | 250                                                              | 500                                                              | 1500                                                             | 1500                                                             | 40                                                               |                                                                  |                                                                  | 120                                                              |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 80                                                               |                                                                  | 120                                                              |                                                                  |                                                                  |
|                         | Canara Bank"                        | sooi                                                             | 1000                                                             | 1000                                                             |                                                                  | 401                                                              |                                                                  | 40                                                               | 40                                                               |                                                                  | 1000                                                             | 1000                                                             |                                                                  |                                                                  | 401                                                              |                                                                  | 40                                                               | 106.58                                                           | 62.16 (up t0 21.12.2017)                                         |
|                         | Central Bank of Indla:              |                                                                  |                                                                  | 1000                                                             |                                                                  | 601                                                              | 120                                                              | 180                                                              | 240                                                              | 250                                                              |                                                                  | 1000                                                             | 1000                                                             | 60                                                               | 120                                                              |                                                                  |                                                                  |                                                                  | 68,67 (up t0                                                     |
|                         | Corporation Bank"                   | 2501                                                             |                                                                  | 500                                                              |                                                                  | 100                                                              | 100                                                              | 100                                                              |                                                                  | 250                                                              |                                                                  |                                                                  | 500                                                              |                                                                  | 100                                                              | 100                                                              | 10                                                               |                                                                  |                                                                  |
|                         | Dena Bank                           | 500                                                              |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 100                                                              |                                                                  | 500                                                              |                                                                  |                                                                  | 1000                                                             |                                                                  | 50                                                               | 100                                                              |                                                                  |                                                                  | 12.73 (up t0                                                     |
| 10                      |                                     |                                                                  | 25001                                                            |                                                                  |                                                                  | 20                                                               |                                                                  | 200                                                              | 200                                                              | 500                                                              | 2500                                                             | 5000                                                             |                                                                  | 20                                                               | 100                                                              |                                                                  |                                                                  | 88.23                                                            | 5245                                                             |
| 11                      |                                     |                                                                  | 1000                                                             | 1000                                                             |                                                                  |                                                                  | 100                                                              | 100                                                              |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 100                                                              |                                                                  |                                                                  |                                                                  |
|                         | Indian Bank"                        |                                                                  | 500                                                              |                                                                  |                                                                  |                                                                  |                                                                  | 45                                                               | 100                                                              |                                                                  |                                                                  |                                                                  |                                                                  | 45                                                               | 45                                                               |                                                                  | 45                                                               |                                                                  |                                                                  |
| 12                      | Indian Overseas Bank                |                                                                  |                                                                  | 1000                                                             |                                                                  | 45                                                               | 45                                                               |                                                                  |                                                                  | 100                                                              | 100                                                              |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 87.48                                                            | 3449                                                             |
| 13                      | Oriental Bank of Commerce           |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 45.48                                                            | 17.61 (up t0 42.42.2017)                                         |
| 14                      | Punjab & Sind Bank                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | NIL                                                              | NIL                                                              |
| 15                      |                                     | soo                                                              |                                                                  |                                                                  |                                                                  |                                                                  | 100                                                              | 150                                                              | 200                                                              |                                                                  | 1000                                                             | 1000                                                             | 1000                                                             |                                                                  |                                                                  | 150 50                                                           |                                                                  |                                                                  |                                                                  |
| 16                      | Punjab National Bank "              | 1000                                                             | 1000 2000                                                        | 1000 3000                                                        | 3000                                                             | 40                                                               |                                                                  |                                                                  | 50                                                               | 1000                                                             | 2000                                                             | 3000                                                             | 3000                                                             | 40                                                               | 40                                                               |                                                                  | 200 50                                                           | 430.64                                                           | 9134                                                             |
|                         |                                     |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 40                                                               | 40                                                               | 100                                                              |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  |                                                                  | 38.16                                                            |
| 17                      | State Bank of India (Syndicate Bank |                                                                  | 500                                                              |                                                                  | 1000                                                             | 40                                                               |                                                                  | 410                                                              |                                                                  |                                                                  | 100                                                              | 500                                                              |                                                                  | 40|                                                         | 40                                                               | 40                                                               | 40                                                               |                                                                  |                                                                  |
| 18                      | JUCO Bank ##                        |                                                                  | 500                                                              | 1000                                                             | 1000                                                             |                                                                  | 180                                                              |                                                                  | 410                                                              | 100                                                              |                                                                  |                                                                  | 500                                                              | 261                                                              | 90                                                               | 180                                                              |                                                                  | 7,38                                                             | 30.9.2017)                                                       |
| 19 20                   | United Bank of India                | 250                                                              |                                                                  | 1000                                                             | 1000                                                             | 29 72                                                            | 58 72                                                            | 115 72                                                           | 115 72                                                           | 100                                                              | 250 100                                                          |                                                                  | 100                                                              | 22 44                                                            | 22 72                                                            | 72                                                               | 43 72                                                            |                                                                  | 32.79                                                            |
| 21                      | Vijaya Bank                         | 250                                                              |                                                                  |                                                                  | 500                                                              |                                                                  | 65                                                               | 65                                                               | 65                                                               | 100                                                              | 100                                                              | 250                                                              |                                                                  |                                                                  | 65                                                               | 65                                                               | 65                                                               | 0.4526                                                           |                                                                  |

(As on 31.12.2017)