Banks collected ₹7,086 crore as minimum balance penalties in FY26: Govt | Finance News
According to Chaudhary, of the country’s 12 PSBs, 10 have discontinued penal charges for non-maintenance of minimum average balance in savings accounts. The remaining two PSBs have rationalised such charges in accordance with their board-approved policies and commercial considerations.
Which banks collected the highest charges?
Other major private lenders included ICICI Bank (₹353.50 crore), Kotak Mahindra Bank (₹290.65 crore), Yes Bank (₹195.05 crore) and IDBI Bank (₹175.15 crore). The Reserve Bank of India (RBI) noted that data for private sector banks prior to FY23 is not maintained, while FY26 figures are provisional.
Are zero-balance and Jan Dhan accounts exempt?
Chaudhary reiterated that Basic Savings Bank Deposit Accounts (BSBDAs), including those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), do not require customers to maintain a minimum balance.
These zero-balance accounts offer basic banking services such as deposits, withdrawals and ATM access without any penal charges. According to the government, around 730 million BSBDAs, including PMJDY accounts, are currently exempt from penalties for non-maintenance of minimum balance.
What rules govern minimum balance charges?
According to the Finance Ministry, the RBI permits banks to levy minimum balance charges on savings and current accounts under their board-approved policies, provided such charges are reasonable, transparent and commensurate with the cost of providing banking services.
Banks are also required to notify customers through SMS, email, letters or other appropriate means and generally provide customers sufficient time to restore the required minimum balance before any penalty is imposed.
PSBs’ financial health improves amid sustained credit growth
Replying to another question in the Rajya Sabha,Chaudhary said the financial health of public sector banks (PSBs) has improved significantly, reflected in healthy balance sheets, historically high profits and gross non-performing assets (GNPAs) falling to multi-decadal lows. He said PSBs have also recorded sustained credit growth across various sectors of the economy.
Chaudhary further informed the House that the government introduced the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026 to help businesses tide over short-term liquidity mismatches arising from the West Asia crisis, reported PTI. Under the scheme, the National Credit Guarantee Trustee Company Ltd (NCGTC) provides guarantee coverage to Member Lending Institutions (MLIs) for defaults arising from the additional credit facilities extended to eligible borrowers.
ECLGS 5.0 provides 100 per cent guarantee coverage for micro, small and medium enterprises (MSMEs) and 90 per cent coverage for non-MSMEs and the scheduled passenger airline sector. The scheme covers credit flow of up to ₹2.55 trillion, including ₹5,000 crore specifically earmarked for the scheduled passenger airline sector.
