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<\/figure>\n\n\n\nThe figures have once again brought attention to minimum balance charges, with consumer groups questioning whether such penalties place an unnecessary burden on small account holders.<\/p>\n\n\n\n
Private Banks Collected More Than Twice As Much<\/strong><\/p>\n\n\n\n The data shows that private banks earned more than double<\/strong> the amount collected by public sector banks through minimum balance penalties during the financial year.<\/p>\n\n\n\n Among private lenders, HDFC Bank<\/strong> topped the list by collecting \u20b91,798.14 crore<\/strong>, followed by Axis Bank<\/strong> with \u20b91,081.33 crore<\/strong>.<\/p>\n\n\n\n Together, these two banks accounted for \u20b92,879.47 crore<\/strong>, representing nearly 58%<\/strong> of the total minimum balance charges collected by all 19 private sector banks<\/strong>.<\/p>\n\n\n\n Public Sector Banks Collected Lower Penalties<\/strong><\/p>\n\n\n\n Public sector banks collected a combined \u20b92,137.92 crore<\/strong> during FY26, substantially lower than their private sector counterparts.<\/p>\n\n\n\n Several PSBs have either reduced or completely withdrawn minimum balance penalties in recent years as part of efforts to make banking services more customer-friendly and promote financial inclusion.<\/p>\n\n\n\n Among public sector banks, Bank of Baroda<\/strong> collected the highest amount through minimum balance penalties, followed by Punjab National Bank<\/strong> and Indian Bank<\/strong>.<\/p>\n\n\n\n Who Is Exempt From These Charges?<\/strong><\/p>\n\n\n\n The Finance Ministry clarified that Basic Savings Bank Deposit Accounts (BSBDAs)<\/strong>, including Pradhan Mantri Jan Dhan Yojana (PMJDY)<\/strong> accounts, are completely exempt from minimum balance penalties.<\/p>\n\n\n\n These zero-balance accounts are designed to ensure access to banking services without requiring customers to maintain a minimum account balance.<\/p>\n\n\n\n The exemption supports the government’s broader financial inclusion initiatives aimed at bringing more people into the formal banking system.<\/p>\n\n\n\n Why Do Banks Levy Minimum Balance Charges?<\/strong><\/p>\n\n\n\n