‘Huge penalty’ for minimum balance! These 3 banks earned the most in the name of penalty

According to data shared by the Finance Ministry in the Lok Sabha, HDFC Bank, Axis Bank and Punjab National Bank (PNB) were imposed the highest penalty on their customers for not maintaining the required minimum balance in their savings and current accounts in FY 22-23, FY 23-24 and FY 24-25.

In response to an unstarred question in the Lok Sabha on March 9, 2026, the Finance Ministry gave this data in response to a question related to charges for not maintaining Minimum Average Balance (MAB) in bank accounts. This shows that public sector banks (PSBs) recovered Rs 8,092.83 crore from such account holders between the financial year 2022-23 and the financial year 2024-25.

One of the questions asked was whether the government is aware that small depositors and daily wage laborers are being penalized for not having sufficient balance in their accounts? If so, what are the reasons for the same and what corrective steps has the government taken in this regard?

The ministry replied

Finance Minister Nirmala Sitharaman said that the bank provides the facility of zero-balance savings accounts. These accounts include, among others, Basic Savings Bank Deposit Accounts (BSBDAs), including those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY). These aim to ensure access to banking facilities for all, especially those who do not have a bank account, those from weaker sections and small depositors.

Also, to promote financial inclusion through affordable and accessible banking services. These accounts do not require any minimum balance to be maintained and provide basic banking services like deposits, withdrawals and ATM access without any fees and without any penal fees. Therefore, no penal charge for non-maintenance of minimum balance is imposed on approximately 72 crore BSBDAs (which also include PMJDY accounts).

Which government banks charge higher fees?

Among public sector banks, Punjab National Bank collected the highest penalty of Rs 1,577.87 crore in FY 22-23, FY 23-24 and FY 24-25; After this, Bank of Baroda, Indian Bank and Canara Bank came next.

HDFC Bank collected the highest penalty

The data also shows that in many cases private sector banks have collected much more penalty than PSU banks. HDFC Bank collected Rs 3,871.71 crore as charges in FY 22-23, FY 23-24 and FY 24-25. Axis Bank stood second with Rs 2,705.97 crore.

No impact on zero-balance accounts

The government clarified that zero-balance accounts, such as Basic Savings Bank Deposit Account (BSBDA)—including those opened under the Pradhan Mantri Jan Dhan Yojana—will not attract any penalty for not maintaining minimum balance. In recent years, many public sector banks have reviewed and relaxed their service charge structures. According to the government, in 2025, nine public sector banks have completely waived the penalty for not maintaining minimum balance in savings accounts, while the rest of the banks have also rationalized these charges.