HDFC Bank, Axis Bank and PNB collected highest minimum balance charges in three financial years, Parliamentary data revealed

HDFC Bank, Axis Bank and Punjab National Bank (PNB) received the highest penalties in FY 22-23, FY 23-24 and FY 24-25 from their customers for not maintaining the required minimum balance in savings and current accounts, according to data shared by the Finance Ministry in the Lok Sabha.

In a reply to an unstarred question in Lok Sabha on March 9, 2026, the data was provided by the Ministry of Finance in response to a question regarding charges levied for non-maintenance of Minimum Average Balance (MAB) in bank accounts. It shows that Public Sector Banks (PSBs) collected Rs 8,092.83 crore from FY 2022-23 and FY 2024-25 from deposit account holders.

One of the questions asked was whether the government is aware that small depositors and daily wage earners are being penalised for insufficient balances despite the national push for financial inclusion, if so, the reasons therefore and the corrective action taken by the government in this regard.


Minister of Finance Nirmala Sitharaman stated: “Banks offer zero-balance savings accounts facility. These accounts are inter alia comprised of Basic Savings Bank Deposit Accounts (BSBDAs) including the accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), to ensure universal access to banking facilities, particularly for unbanked, vulnerable and small depositors, and to promote financial inclusion through affordable and accessible banking services. These accounts do not require maintenance of any minimum balance and provide basic banking services such as deposits, withdrawals and ATM access free of charge, without levy of any penal charges. Accordingly, approximately 72 crore BSBDAs, including, PMJDY accounts are not subject to any penal charges for the non-maintenance of minimum balance”

PSU banks: PNB, Bank of Baroda and Indian Bank among top collectors

Among public sector lenders, Punjab National Bank collected the highest penalties in FY 22-23, FY23-24 and FY24-25 at Rs 1,577.87 crore, while Bank of Baroda, Indian Bank and Canara Bank followed.

Rank	Bank	FY23	FY24	FY25	Total penalties (₹ crore)
1	Punjab National Bank	486.16	674.04	417.67	1,577.87
2	Bank of Baroda	387.52	443.3	441.35	1,272.17
3	Indian Bank	295.23	367.66	503.38	1,166.27
4	Canara Bank	390.85	358.67	277.71	1,027.23
5	State Bank of India	211.47	302.95	418.4	932.82
6	Bank of India	174.99	194.25	170.83	540.07
7	Union Bank of India	128.7	188.21	178.84	495.75
8	Bank of Maharashtra	131.77	143.69	152.86	428.32
9	Central Bank of India	150.81	135.31	97.19	383.31
10	UCO Bank	18.3	43.43	53.56	115.29
11	Punjab & Sind Bank	19.02	42.53	48.57	110.12
12	Indian Overseas Bank	13	15.06	15.55	43.61

HDFC Bank collected highest penalty charges

The data also shows that private sector banks collected much higher penalties compared to PSU banks in several cases. HDFC Bank collected Rs 3,871.71 crore in charges in FY 22-23, FY23-24 and FY 24-25. Axis Bank was second at Rs 2,705.97 crore.

Rank	Bank	FY23	FY24	FY25	Total penalties (₹ crore)
1	HDFC Bank Limited	1,036.05	1,316.80	1,518.92	3,871.77
2	Axis Bank Limited	878.23	826.45	1,001.29	2,705.97
3	ICICI Bank Limited	400.45	433.06	391.28	1,224.79
4	Kotak Mahindra Bank Limited	192.26	261.24	254.26	707.76
5	IndusInd Bank Limited	92.68	108.76	170.6	372.04
6	IDFC First Bank Limited	91.93	120.44	119.18	331.55
7	Federal Bank Limited	86.21	102.76	132.42	321.39
8	Yes Bank Limited	59.75	69.66	119.89	249.3
9	South Indian Bank Limited	41.83	62.61	89.45	193.89
10	IDBI Bank Limited	76.17	59.31	75.73	211.21
11	City Union Bank Limited	75.35	31.86	35.45	142.66
12	Karur Vysya Bank Limited	51.99	50.14	49.84	151.97
13	Bandhan Bank Limited	0	43.26	73.54	116.8
14	CSB Bank Limited	25.29	35.58	44.15	105.02
15	Jammu & Kashmir Bank Limited	0	30.52	47.67	78.19
16	RBL Bank Limited	28.33	28.92	33.43	90.68
17	Tamilnad Mercantile Bank Limited	26.71	28.76	30.03	85.5
18	DCB Bank Limited	8.73	9.94	11.75	30.42
19	Dhanlaxmi Bank Limited	0	0	0	0
20	Karnataka Bank Limited	0	0	0	0
21	Nainital Bank Limited	0	0	0	0

Zero-balance accounts not affected

The government clarified that zero-balance accounts such as Basic Savings Bank Deposit Accounts (BSBDAs), including those opened under the Pradhan Mantri Jan Dhan Yojana, are not subject to minimum balance penalties.

Banks easing minimum balance rules

In recent years, several public sector banks have reviewed and relaxed their service charge structures. According to the government, nine PSU banks completely waived minimum balance penalties in savings accounts in 2025, while the remaining banks have also rationalised the charges.