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Banks collected upwards of ₹26,170 crore from customers as fines for not keeping the minimum average balance (MAB) in their accounts across the four financial years spanning FY23 to FY26, as per a written reply given by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha. Figures gathered from public sector banks and the Reserve Bank of India (RBI) reveal that private lenders were responsible for the bulk of this sum.
Just in FY26, banks pulled in ₹7,086.63 crore via minimum balance fines. Private sector lenders made up ₹4,948.71 crore of this, over double the ₹2,137.92 crore brought in by public sector banks (PSBs).
The government further noted that public sector banks have considerably softened such fines of late. Out of the nation's 12 PSBs, 10 have done away with penal fees for failing to maintain minimum average balance in savings accounts entirely, whilst the other two have adjusted them according to their board-sanctioned policies and business considerations.
Private lenders led by HDFC Bank, PSBs led by SBI
Amongst private lenders, HDFC Bank brought in the largest sum through minimum balance fines in FY26, totalling ₹1,798.14 crore, with Axis Bank close behind at ₹1,081.33 crore. Between them, these two banks made up close to 58% of all minimum balance fines gathered by private sector banks that year.
Further private banks on the list included ICICI Bank (₹353.50 crore), Kotak Mahindra Bank (₹290.65 crore), Yes Bank (₹195.05 crore) and IDBI Bank (₹175.15 crore). The RBI pointed out that figures for private banks prior to FY23 are not kept on record, whilst the FY26 numbers remain provisional.
Amongst public sector lenders, State Bank of India (SBI) posted the highest figure at ₹477.27 crore, trailed by Bank of Baroda (₹394.10 crore) and Indian Bank (₹299.17 crore). That said, the government pointed out that SBI's sum relates to current accounts, given that the bank has done away with minimum balance fines on savings accounts since March 2020.
Zero-balance accounts stay exempt
The finance ministry restated that Basic Savings Bank Deposit Accounts (BSBDAs), which includes those set up under the Pradhan Mantri Jan Dhan Yojana (PMJDY), are not obliged to keep a minimum balance. These accounts come with basic banking facilities such as deposits, withdrawals and ATM access at no cost.
As per the government, close to 73 crore BSBDAs, PMJDY accounts included, are presently exempt from any fine for failing to maintain the minimum balance.
The ministry also stated that the RBI permits banks to impose minimum balance fines on other savings and current accounts as per their board-sanctioned policies, so long as the charges are fair, transparent and proportionate to the cost of delivering banking services. Banks must also inform customers via SMS, email, letter or other suitable channels and typically allow them time to top up the required balance before fines are applied.
Just in FY26, banks pulled in ₹7,086.63 crore via minimum balance fines. Private sector lenders made up ₹4,948.71 crore of this, over double the ₹2,137.92 crore brought in by public sector banks (PSBs).
The government further noted that public sector banks have considerably softened such fines of late. Out of the nation's 12 PSBs, 10 have done away with penal fees for failing to maintain minimum average balance in savings accounts entirely, whilst the other two have adjusted them according to their board-sanctioned policies and business considerations.
Private lenders led by HDFC Bank, PSBs led by SBI
Amongst private lenders, HDFC Bank brought in the largest sum through minimum balance fines in FY26, totalling ₹1,798.14 crore, with Axis Bank close behind at ₹1,081.33 crore. Between them, these two banks made up close to 58% of all minimum balance fines gathered by private sector banks that year.
Further private banks on the list included ICICI Bank (₹353.50 crore), Kotak Mahindra Bank (₹290.65 crore), Yes Bank (₹195.05 crore) and IDBI Bank (₹175.15 crore). The RBI pointed out that figures for private banks prior to FY23 are not kept on record, whilst the FY26 numbers remain provisional.
Amongst public sector lenders, State Bank of India (SBI) posted the highest figure at ₹477.27 crore, trailed by Bank of Baroda (₹394.10 crore) and Indian Bank (₹299.17 crore). That said, the government pointed out that SBI's sum relates to current accounts, given that the bank has done away with minimum balance fines on savings accounts since March 2020.
Zero-balance accounts stay exempt
The finance ministry restated that Basic Savings Bank Deposit Accounts (BSBDAs), which includes those set up under the Pradhan Mantri Jan Dhan Yojana (PMJDY), are not obliged to keep a minimum balance. These accounts come with basic banking facilities such as deposits, withdrawals and ATM access at no cost.
As per the government, close to 73 crore BSBDAs, PMJDY accounts included, are presently exempt from any fine for failing to maintain the minimum balance.
The ministry also stated that the RBI permits banks to impose minimum balance fines on other savings and current accounts as per their board-sanctioned policies, so long as the charges are fair, transparent and proportionate to the cost of delivering banking services. Banks must also inform customers via SMS, email, letter or other suitable channels and typically allow them time to top up the required balance before fines are applied.
