Banks Collect ₹7,086 Crore in FY26 Penalties

July 28, 2026
Current Context:  On 28 July 2026, Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha that banks collected ₹7,086.63 crore as minimum average balance penalties during FY 2025–26.

Banks Collect ₹7,086 Crore in FY26 Penalties
  • Private sector banks collected ₹4,948.71 crore, accounting for nearly 70% of the total, while public sector banks collected ₹2,137.92 crore.
  • Among private banks, HDFC Bank collected the highest amount at ₹1,798.14 crore, followed by Axis Bank with ₹1,081.33 crore.
  • Among public sector banks, SBI collected the highest amount at ₹477.27 crore, followed by Bank of Baroda and Indian Bank. SBI’s charges related to current accounts, as it had removed minimum-balance penalties on savings accounts in March 2020.
  • Of India’s 12 public sector banks, 10 have discontinued minimum-balance penalties on savings accounts, while the remaining two have rationalised their charges under board-approved policies.
  • No such penalty is imposed on Basic Savings Bank Deposit Accounts, including accounts opened under the Pradhan Mantri Jan Dhan Yojana.

Question: 

Q1.How much did banks collect as minimum average balance penalties during FY 2025–26?
a) ₹4,948.71 crore
b) ₹5,086.63 crore
c) ₹7,086.63 crore
d) ₹9,224.55 crore

Answer: c) Banks collected ₹7,086.63 crore as minimum average balance penalties during FY 2025–26. Private sector banks contributed nearly 70% of the total, while Basic Savings Bank Deposit Accounts, including PM Jan Dhan Yojana accounts, were exempt from such penalties.

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