NEW DELHI — Private sector banks collected approximately ₹11,000 crore in penalties for non-maintenance of minimum account balances between FY23 and FY25, significantly higher than the ₹8,000 crore collected by public sector banks (PSBs). Data shared in the Lok Sabha highlights a widening policy gap between the two banking segments.

Among private lenders, HDFC Bank led with collections exceeding ₹3,800 crore, followed by Axis Bank (₹2,700 crore) and ICICI Bank (₹1,200 crore). In the public sector, Punjab National Bank reported the highest collection at over ₹1,500 crore, followed by Bank of Baroda and Indian Bank.

The lower figures for public banks reflect a major shift toward consumer-friendly policies. State Bank of India (SBI) scrapped minimum balance penalties in 2020, with several other state-owned lenders following suit for savings accounts. Conversely, private banks continue to enforce strict Monthly Average Balance (MAB) requirements, often reaching ₹10,000 for urban branches.

Despite these figures, over 72 crore accounts—including Jan Dhan and basic savings accounts—remain legally exempt from such charges, ensuring that the country's most vulnerable depositors are protected from these penalties.