Banks collected over Rs 7,000 crore from account holders in FY26 for not maintaining minimum balance
Private sector banks collected Rs 4,948.71 crore from customers in FY26 as charges for failing to maintain the minimum average balance in savings and current accounts, the government informed Parliament on Tuesday.
In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said public sector banks (PSBs) collected Rs 2,137.92 crore under the same head during the financial year, citing Reserve Bank of India (RBI) data.
Among private lenders, HDFC Bank recorded the highest collections at Rs 1,798.14 crore, followed by Axis Bank with Rs 1,081.33 crore. Together, the two banks accounted for Rs 2,879.47 crore, or 58% of the total charges collected by 19 private sector banks.
The minister clarified that Basic Savings Bank Deposit Accounts, including Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, are exempt from such penalty charges.
Responding to a separate query, Chaudhary said the financial health of PSBs has improved significantly, marked by stronger balance sheets, record profits and gross non-performing assets (GNPAs) falling to multi-decade lows. He added that public sector lenders have also maintained steady credit growth across sectors.
The minister further said the government launched Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026 to help businesses facing short-term liquidity challenges arising from the West Asia crisis.
Under the scheme, the National Credit Guarantee Trustee Company Ltd (NCGTC) provides guarantee coverage to member lending institutions for additional credit extended to eligible borrowers. It offers 100% guarantee coverage for MSMEs and 90% coverage for non-MSMEs and the scheduled passenger airline sector, supporting credit flow of up to Rs 2.55 lakh crore, including Rs 5,000 crore earmarked for airlines.
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