Core Insights - The Ministry of Finance provided data on penalties for non-maintenance of Minimum Average Balance (MAB) in bank accounts, highlighting the financial burden on small depositors and daily wage earners [1][8] - Public Sector Banks (PSBs) collected a total of ₹8,092.83 crore in penalties from FY 2022-23 to FY 2024-25, with Punjab National Bank (PNB) leading the collection [8] - Private sector banks, particularly HDFC Bank, collected significantly higher penalties compared to PSBs during the same period [3][8] Public Sector Banks (PSBs) - Punjab National Bank collected the highest penalties among PSBs, totaling ₹1,577.87 crore across FY 22-23, FY 23-24, and FY 24-25 [2][8] - Other notable PSBs in penalty collections include Bank of Baroda (₹1,272.17 crore), Indian Bank (₹1,166.27 crore), and Canara Bank (₹1,027.23 crore) [2] Private Sector Banks - HDFC Bank led the penalty collections among private banks with ₹3,871.77 crore, followed by Axis Bank at ₹2,705.97 crore [3][4] - Other private banks with significant penalties include ICICI Bank (₹1,224.79 crore) and Kotak Mahindra Bank (₹707.76 crore) [4] Zero-Balance Accounts - The government clarified that zero-balance accounts, such as Basic Savings Bank Deposit Accounts (BSBDAs) and those under the Pradhan Mantri Jan Dhan Yojana, are exempt from minimum balance penalties [6][9] - Approximately 72 crore BSBDAs are not subject to any penal charges for non-maintenance of minimum balance [8] Changes in Banking Policies - Several public sector banks have reviewed and relaxed their service charge structures, with nine PSBs waiving minimum balance penalties entirely in 2025 [7][9] - The remaining banks have also rationalized their charges to promote financial inclusion [7]