11 PSU Banks Charge Rs 2,331 Crore From Account Holders

Eleven public sector banks, excluding State Bank of India (SBI), have charged Rs 2,331 crore from account holders for their failure to maintain minimum balance in savings banks in FY2024. A  rise of 25.63 per cent from Rs 1,855.43 crore in FY2023. These banks collected Rs 5,614 crore from account holders for not maintaining the minimum balance in the last three years, according to Ministry of Finance figures.

Banks collected maximum amount such as

Punjab National Bank (PNB) collected the maximum amount of Rs 633.4 crore from their customers, followed by Bank of Baroda Rs 386.51 crore and Indian Bank Rs 369.16 crore, Ministry of Finance said in its reply to a question raised in the Parliament. The minimum balance penalty will be higher if charges levied by private sector banks are taken into account. All the private banks are charging hefty amounts from account holders if they fail to keep the minimum balance in their accounts.

Deposit of cash

As per guidelines, some basic minimum facilities are being provided to account holders under Basic Savings Bank Deposit Account (BSBDA), free of charge, without any requirement of minimum balance. These include deposit of cash at bank branch as well as ATMs/CDMs and receipt/ credit of money through any electronic channel or by means of deposit /collection of cheques drawn by Central/State Government agencies and departments. There is no limit on number and value of deposits that can be made in a month.

Minimum of four withdrawals in a month

Under BSBDA, minimum of four withdrawals in a month, including ATM withdrawal are allowed. For all other type of bank accounts, banks are competent to provide any value-added service, free of cost, as per their board approved policy.

Guidelines regarding levy of penal charges

The Reserve Bank of India (RBI) vide its circulars issued in 2014 and 2015 has laid down guidelines regarding levy of penal charges on non-maintenance of minimum balances in savings bank accounts and regarding customer service in banks. Banks were permitted to fix penal charges regarding non-maintenance of minimum balance in savings account, as per their board approved policy, while ensuring that penal charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening the account.

Slab structures for recovery of charges

Banks have formulated slab structures for recovery of charges considering different geographies and segments. Further, RBI norms require the banks to inform the customers regarding the requirement of minimum balance at the time of opening the account. Any subsequent changes should also be intimated to the account holders. “Account holders are normally notified by SMS and mail in advance if their accounts don’t have the minimum balance required,” said a bank official.

In case of non-maintenance of minimum balance

In case of non-maintenance of minimum balance, the bank should notify the customer about the penal charges which will be applicable if the balance is not replenished within one month from the date of notice. It should be ensured that savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance, according to the guidelines.