Lok Sabha Question No. 3539 (UNSTARRED), answered on 2025-08-11
Subject: Waivers on Minimum Balance Charges
Ministry: FINANCE
Asked by: Shri Dhairyasheel Sambhajirao Mane, Shri Sudheer Gupta, Shri Manish Jaiswal, Shri Chavan Ravindra Vasantrao

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3539

ANSWERED ON MONDAY, AUGUST 11, 2025/ SRAVANA 20, 1947 (SAKA)

## WAIVERS ON MINIMUM BALANCE CHARGES

3539.  Shri Dhairyasheel Sambhajirao Mane:

Shri Chavan Ravindra Vasantrao:

Shri Manish Jaiswal:

Shri Sudheer Gupta:

Will the Minister of FINANCE be pleased to state:

- (a) whether Public Sector Banks (PSBs) have recently announced or implemented waivers on minimum balance fees/charges to encourage savings accountholders to maintain their accounts with the banks and if so, the details thereof;
- (b)  the  rationale  behind  the  decision  and  the  expected  impact  on  financial  inclusion  and customer retention;
- (c)  whether  the  Government  is  providing/proposes  to  provide  any  financial  support  or incentives to PSBs to implement such measures and if so, the details thereof;
- (d) the details of estimated financial impact on the banks due to waiver of these fees/charges; and
- (e) the details of other measures taken/being taken by the Reserve Bank of India and Public Sector Banks to maintain CASA (Current Account and Saving Account) ratio and retain customers?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (e): The minimum balance fees/charges in savings accounts of customers are levied by the banks as per their board approved policy and within the guidelines issued by the Reserve Bank of India (RBI). The RBI circulars dated, 20.11.2014 and 1.7.2015 permit banks to levy service charges, including, inter  alia, for non-maintenance of minimum balance in savings accounts, subject to the condition that such charges must be reasonable and not out of line with the average cost of providing the services. Banks may remove the charges or charge lower than their service cost, depending upon their board approved policy and commercial wisdom.

As part of financial inclusion objectives, RBI has advised the banks to offer a 'Basic Savings Bank Deposit Account (BSBDA)' to their customers, subject to certain conditions, wherein there shall not be any requirement to maintain a minimum balance. Additionally, certain basic banking facilities, such as, deposits, withdrawals, ATM cards, etc. are to be provided in such accounts without any charges.

Further,  banks  also  open  accounts  under  Pradhan  Mantri  Jan  Dhan  Yojana  without  any minimum balance requirement.

In alignment with the spirit of financial inclusion and implement customer centric banking, most Public Sector Banks (PSBs) have removed their minimum balance charges in general savings bank accounts also, while some have rationalised, as per their board approved policy. The charges are removed/rationalised as part of their business strategy with the commercial wisdom, in view of the perceived benefits which may arise in terms of growth in deposits, among others.

PSBs have also implemented a multi-pronged strategy to attract CASA (Current Account and Savings Account) deposits and to strengthen customer retention, including, inter alia, the following -

- (i). Continuous  product  innovation  and  segment  specific  product  offerings  using analytics to drive customer retention;
- (ii). Smooth and seamless onboarding of customers by leveraging technology, like use of Video KYC, digital KYC verification;
- (iii). Strategic approach for retention of existing deposits and new deposit acquisition and digitally enabled customer offerings;
- (iv). Financial outreach programs / business campaigns; and
- (v). Enhancement of access to mobile and Internet banking through increase in average number  of  services  offered,  customer-friendly  features,  and  regional  languages available on the customer interface.