HDFC Bank, Axis Bank collect highest penalties from customers for non-maintenance of minimum average balance; Bank of Baroda tops public sector bank list

Many banks collect penalty charges from their customers for failing to maintain the minimum average balance (MAB) in their accounts. Answering a query in Rajya Sabha, the Ministry of Finance said that HDFC Bank, Axis Bank and Bank of Baroda were the top collectors of the highest penalty charges from their customers for non-maintenance of the MAB. The data for public sector banks is from the Financial Year (FY) 2021-22 to FY 2025-26. While the data for private sector banks is from Rs FY 22-23 to FY 25-26.

According to the data shared by the ministry, HDFC Bank collected around Rs 5,670 crore penalty, Axis Bank collected Rs 3,787 crore and Bank of Baroda collected nearly Rs 2,028 crore from its customers as penalty for failing to maintain the minimum balance.

Punjab National Bank is in the fourth position with Rs 1,896 crore penalty collection, while Indian Bank has Rs 1,777 crore penalty collected from customers from FY 21-22 to FY 25-26.

The data came in a written reply in the Rajya Sabha on July 28, 2026, when Pankaj Chaudhary, Minister of State, Ministry of Finance, shared details of the charges collected by public and private sector banks for non-maintenance of MAB. The government also said that most PSU banks have already withdrawn these penalties for savings accounts.

How much did banks collect as penalty from customers for the non-maintenance of the MAB?

The Finance Ministry has released bank-wise and financial year-wise data for public sector banks and private sector banks. The public sector bank data provided by the Reserve Bank of India (RBI) covers the last five financial years. However, the data for private sector banks is available only from FY 2022-23 onwards.

No penalty for Jan Dhan and zero-balance accounts

The government said banks offer zero-balance savings accounts through Basic Savings Bank Deposit Accounts (BSBDAs), including accounts opened under the Pradhan Mantri Jan Dhan Yojana.

These accounts are meant to improve financial inclusion by providing basic banking services to unbanked, vulnerable and small depositors.

Since these accounts do not require customers to maintain a minimum balance, no penalty is charged for the non-maintenance of balance. They also provide basic banking services such as deposits, withdrawals and ATM access without any penal charges, says the Finance Ministry in Rajya Sabha.

Most public sector banks have removed penalties for non-maintenance of MAB

The Finance Ministry said public sector banks have reviewed their service charge structures to make banking more customer-friendly.

Out of the 12 public sector banks, 10 have discontinued penal charges for the non-maintenance of the MAB in savings accounts, says the Minister. The remaining two banks have rationalised these charges in line with their board-approved policies and commercial considerations.

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

Bank	FY21-22	FY22-23	FY23-24	FY24-25	FY25-26	Total (₹ crore)
Bank of Baroda	361.67	387.52	443.3	441.35	394.1	2,027.94
Punjab National Bank	111.83	486.16	674.04	417.67	206.68	1,896.38
Indian Bank	311.41	295.23	367.66	503.38	299.17	1,776.85
State Bank of India	190.68	211.47	302.95	418.4	477.27	1,600.77
Canara Bank	283.37	390.85	358.67	277.71	213.48	1,524.08
Bank of India	143.36	174.99	194.25	170.83	132.81	816.24
Union Bank of India	115.14	128.7	188.21	178.84	120.22	731.11
Bank of Maharashtra	125.55	131.77	143.69	152.86	129.72	683.59
Central Bank of India	125.82	150.81	135.31	97.19	27.87	537
UCO Bank	17.57	18.3	43.43	53.56	49.05	181.91
Punjab & Sind Bank	3.38	19.02	42.53	48.57	67.15	180.65
Indian Overseas Bank	12.86	13	15.06	15.55	20.4	76.87

* Amount pertains to current account as SBI had completely waived off penal charges for the non-maintenance of Minimum Average Balance in saving accounts since March 2020.

Private banks: HDFC Bank, Axis Bank and ICICI Bank are the top collectors

The data shows that HDFC Bank and Axis Bank are ranked first and second for the penalties collected from FY 22-23 to FY 25-26. ICICI Bank was third, with total collections of Rs 1,578.29 crore. Kotak Mahindra Bank collected Rs 998.41 crore over the four-year period.

Bank	FY22-23	FY23-24	FY24-25	FY25-26*	Total (₹ crore)
HDFC Bank Limited	1,036.05	1,316.80	1,518.92	1,798.14	5,669.91
Axis Bank Limited	878.23	826.45	1,001.29	1,081.33	3,787.30
ICICI Bank Limited	400.45	433.06	391.28	353.5	1,578.29
Kotak Mahindra Bank Limited	192.26	261.24	254.26	290.65	998.41
IndusInd Bank Limited	92.68	108.76	170.6	177.92	549.96
IDFC First Bank Limited	91.93	120.44	119.18	163.81	495.36
Federal Bank Limited	86.21	102.76	132.42	147.43	468.82
Yes Bank Limited	59.75	69.66	119.89	195.05	444.35
IDBI Bank Limited	76.17	59.31	75.73	175.15	386.36
South Indian Bank Limited	41.83	62.61	89.45	110.14	304.03
Jammu & Kashmir Bank Limited	0	30.52	47.67	75.12	153.31
Bandhan Bank Limited	0	43.26	73.54	76.45	193.25
Karur Vysya Bank Limited	51.99	50.14	49.84	58.69	210.66
Karnataka Bank Limited	0	0	0	79.73	79.73
City Union Bank Limited	75.35	31.86	35.45	29.88	172.54
CSB Bank Limited	25.29	35.58	44.15	48.69	153.71
Tamilnad Mercantile Bank Limited	26.71	28.76	30.03	39.29	124.79
RBL Bank Limited	28.33	28.92	33.43	30.21	120.89
DCB Bank Limited	8.73	9.94	11.75	17.53	47.95

What RBI rules say on minimum balance charges

As per the RBI instructions, banks can levy charges for the non-maintenance of the MAB according to their Board-approved policies, subject to such charges being reasonable, transparent, and commensurate with the cost of providing the services.

In cases of non-maintenance of the agreed minimum balance in bank accounts, banks have been advised by the RBI to notify customers through SMS, email, letter or other appropriate means. Customers are generally given time to restore the required minimum balance before a penalty is applied.