HDFC Bank, Axis Bank, ICICI Bank collected more than all 12 PSBs for not maintaining minimum avg balance

New Delhi, July 28 (ANI): Minister of State Pankaj Chaudhary addresses the Rajya Sabha during the Monsoon Session of Parliament in New Delhi on Tuesday. (Sansad TV/ANI Video Grab)
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From FY23 through FY26, HDFC Bank’s earnings from minimum‑balance penalties surpassed half of the combined amount raised by the 12 public sector banks, as shown in parliamentary data released on Tuesday. Together, HDFC Bank, Axis Bank and ICICI Bank collected more in such penalties than all 12 public sector banks put together for the same period.

The State Bank of India has waived penalty fees for failing to maintain the Minimum Average Balance (MAB) in savings accounts since March 2020, although it still imposes such charges on current accounts. Moreover, no bank—whether public or private—applies penalty fees on Basic Savings Bank Deposit Accounts, which include PMJDY accounts, among others.

According to a written reply from Minister of State for Finance Pankaj Chaudhary, the 12 public sector banks collectively gathered about ₹10,230 crore due to minimum‑balance shortfalls in FY23‑FY26. HDFC Bank alone accounted for more than ₹5,600 crore, roughly 55 percent of the PSB total. Combined, HDFC Bank, Axis Bank and ICICI Bank collected over ₹11,000 crore, exceeding the aggregate amount gathered by all public sector banks.

Chaudhary noted that, to boost customer focus and foster inclusive banking, public sector banks have reassessed their fee structures. Ten of the twelve PSBs have eliminated penalty charges for not maintaining the required average balance in savings accounts, while the remaining two have adjusted those charges in line with board‑approved policies and business considerations.

“As per current RBI guidelines, banks may impose fees for failing to maintain the MAB based on their board‑approved policies, provided the charges are reasonable, transparent, and aligned with the cost of service delivery,” Chaudhary stated.

Minimum balance

“When the agreed minimum balance is not maintained, the RBI advises banks to inform customers via SMS, email, letter or other suitable channels. Typically, customers are given a window to restore the required balance before any penalty is imposed,” he added.

“He further explained that banks provide zero‑balance savings accounts. These include basic savings bank deposit accounts (BSBDAs) such as those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), aiming to give universal banking access—especially to the unbanked, vulnerable and small depositors—and to advance financial inclusion through low‑cost, easily accessible services.”

“These accounts need no minimum‑balance upkeep and offer basic banking functions—deposits, withdrawals and ATM use—free of charge and without any penalty fees,” he said, noting that roughly 73 crore BSBDAs, including PMJDY accounts, are exempt from penalty charges for failing to maintain a minimum balance.

Published on July 28, 2026