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Private sector banks collected INR 4,948.71 crore from customers during FY26 for failing to maintain the required minimum average balance in savings and current accounts, according to information shared by the government in Parliament. Public sector banks collected INR 2,137.92 crore during the same period. HDFC Bank and Axis Bank together accounted for nearly 58% of the total collections made by private banks. The government also said that Basic Savings Bank Deposit Accounts, including PMJDY accounts, remain exempt from such charges, while highlighting the improved financial position of public sector banks and the launch of ECLGS 5.0 to support businesses.
Private sector banks collected INR 4,948.71 crore from customers for non-maintenance of minimum average balance in savings and current accounts during FY26, according to information shared by the government in the Rajya Sabha during the past week.
Responding to a written query in the Upper House, Minister of State for Finance Pankaj Chaudhary, citing data from the Reserve Bank of India (RBI), said public sector banks (PSBs) collected INR 2,137.92 crore under the same category during FY26.
Among private lenders, HDFC Bank recorded the highest collection at INR 1,798.14 crore, followed by Axis Bank, which collected INR 1,081.33 crore. Together, the two banks collected INR 2,879.47 crore, accounting for nearly 58% of the total amount collected by 19 private sector banks as charges for non-maintenance of minimum average balance.
The minister clarified that no penal charges are imposed on Basic Savings Bank Deposit Accounts (BSBDAs), including accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY). These accounts are designed to promote financial inclusion and are exempt from minimum balance requirements under RBI guidelines.
Banks generally levy minimum balance charges on savings and current accounts where customers fail to maintain the prescribed average balance. However, the applicable threshold and penalty vary across banks depending on the type of account and its features.
In response to another question in Parliament, Chaudhary said the financial position of public sector banks has improved considerably, with stronger balance sheets, record profitability and gross non-performing assets (GNPAs) declining to multi-decade lows. He added that PSBs have also maintained steady credit growth across different sectors of the economy.
The minister further informed the House that the government introduced the 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 (MLIs) for defaults on additional credit extended to eligible borrowers. The scheme offers 100% guarantee coverage for micro, small and medium enterprises (MSMEs) and 90% coverage for non-MSMEs as well as the scheduled passenger airline sector.
The total credit flow under ECLGS 5.0 has been capped at INR 2,55,000 crore, including INR 5,000 crore specifically earmarked for the scheduled passenger airline sector. The latest version of the scheme was introduced as an extension of the government's credit guarantee framework, which was first launched during the COVID-19 pandemic to support businesses facing financial stress.
Source PTI
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