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]

Private sector banks collected around ₹11,000 crore in three years (fiscal year 2022-23 to fiscal year 2024-25) as compared to ₹8,000 crore by public sector banks on account of non-maintenance minimum monthly average balance (MAB), data provided by the Finance Ministry in the Lok Sabha on Monday showed.According to data in the written response by Finance Minister Nirmala Sitharaman, HDFC Bank emerged as the top earner with over ₹3,800 crore in 3 years, followed by Axis Bank and ICICI Bank with over ₹2,700 c ...