Lok Sabha Question No. 221 (STARRED), answered on 2026-03-09
Subject: Excessive Bank Charges for not maintaining Minimum Balance
Ministry: FINANCE
Asked by: Prof. Sougata Ray, Shri Suresh Kumar Shetkar

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

## LOK SABHA STARRED QUESTION NO. *221

ANSWERED ON MONDAY, MARCH 9, 2026/PHALGUNA 18, 1947 (SAKA)

## Excessive Bank Charges for not maintaining Minimum Balance

*221. SHRI SURESH KUMAR SHETKAR:

PROF. SOUGATA RAY:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that Public Sector Banks have collected more than Rupees 8,000 crore from ordinary citizens for not maintaining minimum balance, if so, the details thereof along with the details of private banks still doing the same; (b) the total amount collected so far as penalty for not maintaining minimum balance in bank accounts, bank-wise; (c) whether the Government is aware that small depositors and daily wage earners are being penalised for insufficient balances despite the national push for financial inclusion, if so, the reasons therefor and the corrective action taken in this regard; (d) whether  the  Government  is  likely  to  order  immediate  reversal  and  recredit  of  unfairly collected Monthly Average Balance (MAB) charges from low-income account holders, if so, the timeline thereof and if not, the reasons therefor; (e) whether the RBI/Government has taken any decision to write off penalty charges for not maintaining minimum balance in bank accounts and if so, the details thereof; (f)  whether there is any judgement by Court(s) for writing off penalty charges, if so the details thereof; (g) whether  banks  are  prioritising  revenue  generation  through  penalties  instead  of  public service obligations expected from taxpayer-supported institutions and if so, the response of the Government thereto; and (h) whether customers were adequately warned before deduction of penalties or whether the charges  were  imposed  automatically  without  informed  consent  and  if  so,  the  details
- thereof and safeguards in place in this regard?

## ANSWER

THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

- (a) to (h): A statement is laid on the Table of the House.

*****

## STATEMENT FOR LOK SABHA STARRED QUESTION NO. *221 FOR MARCH 9, 2026, REGARDING  'EXCESSIVE  BANK  CHARGES  FOR  NOT  MAINTAINING  MINIMUM BALANCE' BY SHRI SURESH KUMAR SHETKAR and PROF. SOUGATA RAY, HON'BLE MEMBERS OF PARLIAMENT

(a) to (h) Banks offer zero-balance savings accounts facility. These accounts are inter alia comprised  of  Basic  Savings  Bank  Deposit  Accounts  (BSBDAs)  including  the  accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), to ensure universal access to banking facilities, particularly for unbanked, vulnerable and small depositors, and to promote financial inclusion through affordable and accessible banking services. These accounts 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 any penal charges. Accordingly, approximately 72 crore BSBDAs, including, PMJDY accounts are not subject to any penal charges for non-maintenance of minimum balance.

For accounts other than BSBDAs including PMJDY accounts, banks may levy charges for non-maintenance  of  Minimum  Monthly  Average  Balance  (MAB)  in  accordance  with  their Board-approved policies and the extant instructions of the Reserve Bank of India (RBI), which require that such charges be reasonable, transparent and broadly aligned with the cost of providing the services.

During FY 2022-23 to FY 2024-25, Public Sector Banks (PSBs) have collected ₹8,092.83 crore  from  deposit  account  holders  comprising  of  current  account  and  savings  account holders,  on  account of  non-maintenance Minimum Monthly Average Balance (MAB). The bank-wise details of charges collected for non-maintenance of Minimum Monthly Balance by Public Sector Banks and Private Sector Banks are provided in the Annexure.

The  amount  of  ₹8,092.83  crore  collected  over  the  last  three  financial  years  constitutes approximately 0.23% of the total income of Public Sector Banks during the same period, indicating  that  such  charges form only  a  very  small  proportion of banks'  income  and  are primarily aligned with the cost of providing banking services rather than revenue generation through penalties.

To further enhance customer centricity and promote inclusive banking PSBs have reviewed their  service  charge  structures.  While,  in  accordance  with  board-approved  policies  and commercial  considerations,  SBI  had  completely  waived  off  penal  charges  for  nonmaintenance of minimum MAB in saving accounts since March 2020, in 2025 nine more PSBs  have  completely  waived  off  such  charges.  The  remaining  two  PSBs  have  also rationalised minimum balance charges in 2025.

RBI has informed that information regarding Court judgments on waiver or write-off of penal charges for non-maintenance of minimum balance is not maintained by it. Further, as per available information, no general direction has been issued by the Hon'ble Supreme Court or any High Court mandating waiver or refund of such penal charges across banks.

In cases of non-maintenance of the agreed minimum balance in bank accounts, banks have been advised by RBI to notify customers through SMS, email, letter or other appropriate means. Customers are generally provided time to restore the required minimum balance before penal charges are applied as per extant regulatory guidelines.

- *****

## Annexure

## Lok Sabha Starred Question no. 221 dated 9.3.2026 regarding 'Excessive Bank Charges for not maintaining Minimum Balance'

Details of charges collected by Public Sector Banks in last 3 years:

(₹ in crore)

| Bank                  | Charges levied for non-maintenance of Minimum Average Balance (Current account & Savings account)   | Charges levied for non-maintenance of Minimum Average Balance (Current account & Savings account)   | Charges levied for non-maintenance of Minimum Average Balance (Current account & Savings account)   |
|-----------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                       | FY 2022-23                                                                                          | FY 2023-24                                                                                          | FY 2024-25                                                                                          |
| Bank of Baroda        | 387.52                                                                                              | 443.30                                                                                              | 441.35                                                                                              |
| Bank of India         | 174.99                                                                                              | 194.25                                                                                              | 170.83                                                                                              |
| Bank of Maharashtra   | 131.77                                                                                              | 143.69                                                                                              | 152.86                                                                                              |
| Canara Bank           | 390.85                                                                                              | 358.67                                                                                              | 277.71                                                                                              |
| Central Bank of India | 150.81                                                                                              | 135.31                                                                                              | 97.19                                                                                               |
| Indian Bank           | 295.23                                                                                              | 367.66                                                                                              | 503.38                                                                                              |
| Indian Overseas Bank  | 13.00                                                                                               | 15.06                                                                                               | 15.55                                                                                               |
| Punjab & Sind Bank    | 19.02                                                                                               | 42.53                                                                                               | 48.57                                                                                               |
| Punjab National Bank  | 486.16                                                                                              | 674.04                                                                                              | 417.67                                                                                              |
| State Bank of India*  | 211.47                                                                                              | 302.95                                                                                              | 418.40                                                                                              |
| UCO Bank              | 18.30                                                                                               | 43.43                                                                                               | 53.56                                                                                               |
| Union Bank of India   | 128.70                                                                                              | 188.21                                                                                              | 178.84                                                                                              |

Source: Public Sector Banks

* Amount pertains to current account as SBI had completely waived off penal charges for non-maintenance of Minimum Average Balance in saving accounts since March 2020.

Details of charges collected by Private Sector Banks in last 3 years:

******

(₹ in crore)

| Bank                             | Charges levied for non-maintenance of Minimum Average Balance   | Charges levied for non-maintenance of Minimum Average Balance   | Charges levied for non-maintenance of Minimum Average Balance   |
|----------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
|                                  | FY 2022-23                                                      | FY 2023-24                                                      | FY 2024-25                                                      |
| Axis Bank Limited                | 878.23                                                          | 826.45                                                          | 1,001.29                                                        |
| Bandhan Bank Limited             | -                                                               | 43.26                                                           | 73.54                                                           |
| City Union Bank Limited          | 75.35                                                           | 31.86                                                           | 35.45                                                           |
| CSB Bank Limited                 | 25.29                                                           | 35.58                                                           | 44.15                                                           |
| DCB Bank Limited                 | 8.73                                                            | 9.94                                                            | 11.75                                                           |
| Dhanlaxmi Bank Limited           | -                                                               | -                                                               | -                                                               |
| Federal Bank Limited             | 86.21                                                           | 102.76                                                          | 132.42                                                          |
| HDFC Bank Limited                | 1,036.05                                                        | 1,316.80                                                        | 1,518.92                                                        |
| ICICI Bank Limited               | 400.45                                                          | 433.06                                                          | 391.28                                                          |
| IDBI Bank Limited                | 76.17                                                           | 59.31                                                           | 75.73                                                           |
| IDFC First Bank Limited          | 91.93                                                           | 120.44                                                          | 119.18                                                          |
| IndusInd Bank Limited            | 92.68                                                           | 108.76                                                          | 170.60                                                          |
| Jammu & Kashmir Bank Limited     | -                                                               | 30.52                                                           | 47.67                                                           |
| Karnataka Bank Limited           | -                                                               | -                                                               | -                                                               |
| Karur Vysya Bank Limited         | 51.99                                                           | 50.14                                                           | 49.84                                                           |
| Kotak Mahindra Bank Limited      | 192.26                                                          | 261.24                                                          | 254.26                                                          |
| Nainital Bank Limited            | -                                                               | -                                                               | -                                                               |
| RBL Bank Limited                 | 28.33                                                           | 28.92                                                           | 33.43                                                           |
| South Indian Bank Limited        | 41.83                                                           | 62.61                                                           | 89.45                                                           |
| Tamilnad Mercantile Bank Limited | 26.71                                                           | 28.76                                                           | 30.03                                                           |
| Yes Bank Limited                 | 59.75                                                           | 69.66                                                           | 119.89                                                          |

Source: Reserve Bank of India