Lok Sabha Question No. 1495 (UNSTARRED), answered on 2026-02-09
Subject: Penalty for not maintaining Minimum Balance
Ministry: FINANCE
Asked by: Smt. Mala Roy, Dr. M K Vishnu Prasad

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1495

Answered on Monday, February 9, 2026/Magha 20, 1947 (Saka)

## Penalty for not maintaining Minimum Balance

1495. SMT. MALA ROY: DR. M K VISHNU PRASAD:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government is aware that some Public Sector Banks/ Private Sector Banks are imposing excessive charges on minimum balance shortfall, ATM usage and SMS alerts;

- (b) if so, the details thereof;

(c) the details of revenue earned by Public and Private Sector Banks through penalties and service charges during the last five years;

(d)  whether  the  Government  proposes  to  regulate  or  cap  unreasonable  banking  charges  to protect common customers; and

- (e) if so, the details thereof?

## ANSWER

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

(a) and (b): The levy of service charges by banks, including charges relating to non-maintenance of minimum balance in savings bank accounts, ATM transactions beyond the prescribed free limits  and  for  SMS  alerts  is  governed  by  banks'  Board-approved  policies  and  the  extant instructions of the Reserve Bank of India (RBI), which require that such charges have to be reasonable, transparent, and aligned with the cost of providing the services.

Further,  banks  offer  zero-balance  savings  accounts,  including  Basic  Savings  Bank  Deposit Accounts  (BSBDAs)  and  accounts  opened  under  the  Pradhan  Mantri  Jan  Dhan  Yojana (PMJDY), which do not require maintenance of any minimum balance and provide basic banking services such as deposits, withdrawals, and ATM access free of charge, without levy of penal charges for non-maintenance of minimum balance.

Public Sector  Banks  (PSBs) have waived or rationalised minimum balance charges in regular savings  bank  accounts  in  accordance  with  their  Board-approved  policies  and  commercial considerations to enhance customer centricity.

- (c): RBI has informed that it does not maintain data relating to revenue earned by public and private sector banks from penalties and service charges. However, based on inputs received from PSBs, the revenue earned through penalties and service charges during the last five years is as below: -

| (Amount in Rs. Crore)   | (Amount in Rs. Crore)      | (Amount in Rs. Crore)   | (Amount in Rs. Crore)   |
|-------------------------|----------------------------|-------------------------|-------------------------|
| FY                      | Minimum Balance Short fall | ATM Usage*              | SMS alerts              |
| 2020-21                 | 1,637.41                   | -416.68                 | 1,044.32                |
| 2021-22                 | 1,805.75                   | -507.49                 | 1,282.03                |
| 2022-23                 | 2,294.68                   | -451.46                 | 1,193.19                |
| 2023-24                 | 2,909.10                   | -594.12                 | 977.28                  |
| 2024-25                 | 2,889.05                   | -647.32                 | 1,218.60                |

(d)  and  (e):  To  protect  the  common  customers  from  unreasonable  banking  charges  and addressing their interests, zero-balance accounts have been made available and free limits for basic banking services have been prescribed. RBI exercises supervisory oversight over banks' practices,  and  the  Government,  in  consultation  with  RBI,  continues  to  engage  with  banks through expansion of digital banking infrastructure and financial literacy / financial inclusion initiatives to promote affordable and inclusive access to banking services to all.

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