Over Rs 8,000 crore collected for not maintaining minimum balance in PSBs 

More than Rs 8,000 crore was collected as charges by 12 Public Sector Banks (PSBs) for non-maintenance of minimum balance in the last three financial years, Parliament data showed. 

With over Rs 1,500 crore collected, Punjab National Bank accounted for 20% of all such charges collected for non-maintenance of minimum balance by the 12 PSBs in the period. This is followed by Bank of Baroda and Indian Bank, which accounted for 16% and 14% of all such charges collected, respectively.  

The reply said that the Public Sector Banks have waived or rationalised minimum balance charges in accordance with their Board-approved policies and commercial considerations in respect of regular savings bank accounts. 

These charges are governed by the banks’ Board-approved policies and the extant guidelines of the Reserve Bank of India (RBI), which require that the charges are reasonable, transparent, and aligned with the cost of providing the services, the reply added. 

Data also shows that these banks, excluding the State Bank of India, have levied close to Rs 3,388 crore in the last three financial years as charges for providing SMS facilities. The SBI has waived these charges since 2020.

With over Rs 1,100 crores collected as charges levied for providing SMS facilities, the Union Bank of India accounted for 35% of all such charges collected by the 11 PSBs. This was followed by the Canara Bank and the Punjab National Bank, which accounted for 15% and 10%, respectively.

The reply also mentioned that banks offer zero-balance savings accounts, which provide basic banking services and do not require maintenance of any minimum balance, such as the Savings Bank Deposit Accounts (BSBDAs) and accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY).