Banks Collected Over Rs 7,000 Crore from Customers for Not Maintaining Minimum Balance in FY26
Banks across India collected more than ₹7,000 crore from customers during the financial year 2025-26 as charges for not maintaining the required minimum average balance in their savings and current accounts. The information was shared by Minister of State for Finance Pankaj Chaudhary in a written reply in the Rajya Sabha, based on data provided by the Reserve Bank of India (RBI).
According to the data, private sector banks collected ₹4,948.71 crore, while public sector banks (PSBs) collected ₹2,137.92 crore during FY26.
HDFC Bank and Axis Bank Collected the Highest Charges
Among private sector banks, HDFC Bank collected the highest amount of ₹1,798.14 crore as minimum balance charges. Axis Bank was second, collecting ₹1,081.33 crore.
Together, these two banks collected ₹2,879.47 crore, which accounts for nearly 58% of the total charges collected by the 19 private sector banks included in the RBI data.
ICICI Bank collected ₹353.50 crore, Kotak Mahindra Bank ₹290.65 crore, Yes Bank ₹195.05 crore, IndusInd Bank ₹177.92 crore and IDBI Bank ₹175.15 crore. The Reserve Bank of India (RBI) told the government that it maintains data for private sector banks only from FY2022-23 onwards, while the FY2025-26 figures are provisional.
Among PSBs, State Bank of India collected the highest ₹477.27 crore, followed by Bank of Baroda at ₹394.10 crore, Indian Bank at ₹299.17 crore, Canara Bank at ₹213.48 crore and Punjab National Bank at ₹206.68 crore. The government noted that SBI’s figure relates only to current accounts because the bank waived penal charges for non-maintenance of minimum average balance in savings accounts from March 2020.
Punjab National Bank’s collections fell from ₹674.04 crore in FY2023-24 to ₹206.68 crore in FY2025-26. Bank of Baroda collected ₹443.30 crore in FY2023-24 and ₹394.10 crore in FY2025-26. State Bank of India’s collections, however, rose from ₹190.68 crore in FY2021-22 to ₹477.27 crore in FY2025-26, although those collections relate only to current accounts.
Charges Collected by Banks for Non-Maintenance of Minimum Balance (FY2025-26)
Overall Collection
| Category | Charges Collected (₹ Crore) |
|---|---|
| Private Sector Banks | 4,948.71 |
| Public Sector Banks (PSBs) | 2,137.92 |
| Total | 7,086.63 |
Private Sector Banks
| Bank | Charges Collected (₹ Crore) |
|---|---|
| HDFC Bank | 1,798.14 |
| Axis Bank | 1,081.33 |
| ICICI Bank | 353.50 |
| Kotak Mahindra Bank | 290.65 |
| Yes Bank | 195.05 |
| IndusInd Bank | 177.92 |
| IDBI Bank | 175.15 |
Public Sector Banks (PSBs)
| Bank | Charges Collected (₹ Crore) |
|---|---|
| State Bank of India (Current Accounts Only) | 477.27 |
| Bank of Baroda | 394.10 |
| Indian Bank | 299.17 |
| Canara Bank | 213.48 |
| Punjab National Bank | 206.68 |
Comparison with Previous Years
| Bank | Earlier Collection | FY2025-26 Collection | Trend |
|---|---|---|---|
| Punjab National Bank | ₹674.04 crore (FY2023-24) | ₹206.68 crore | Decreased |
| Bank of Baroda | ₹443.30 crore (FY2023-24) | ₹394.10 crore | Decreased |
| State Bank of India* | ₹190.68 crore (FY2021-22) | ₹477.27 crore | Increased |
*Note: SBI’s figures relate only to current accounts, as the bank waived minimum balance penalty charges for savings accounts from March 2020.
Minister of state for finance Pankaj Chaudhary said public sector banks have reviewed their service charge structures to enhance customer centricity and promote inclusive banking. Of the 12 PSBs, 10 have discontinued penal charges for non-maintenance of minimum average balance in savings accounts, while the remaining two have rationalized such charges in line with their board-approved policies and commercial considerations.
