Indian Banks Amass Nearly ₹8,900 Crore in Minimum Balance Penalties Over 5 Years; Parliamentary Data Reveals Disparity

Between FY 2019-20 and FY 2023-24, Public Sector Banks (PSBs) alone accounted for ₹8,495 crore of these penalty revenues, highlighting the silent cost borne by retail depositors.

The Institutional Breakdown: Who Collected What?

Following public criticism, State Bank of India (SBI)—the country's largest lender—permanently eliminated minimum balance penalties across all retail savings accounts in March 2020, registering zero penal collections over the subsequent four fiscal years.

In contrast, other state-owned institutions recorded substantial non-interest revenues:

• Punjab National Bank (PNB): Collected ₹1,538 crore, leading all public sector lenders (PNB subsequently announced a waiver of MAB charges effective July 1, 2025).
• Indian Bank: Accumulated ₹1,466 crore in non-maintenance charges.
• Bank of Baroda (BoB): Recorded ₹1,251 crore in depositor penalties.
• Canara Bank: Registered ₹1,158 crore during the same five-year window.