Many banks collect penalty charges from their customers who fail to maintain the minimum average balance (MAB). In a reply in Rajya Sabha, the Ministry of Finance said that HDFC Bank, Axis Bank and Bank of Baroda were the top 3 banks that collected the highest penalty charges from their customers for the 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.
As per 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 in the form of penalty for the non-maintenance of the MAB.
Punjab National Bank is in fourth position with Rs 1,896 crore penalty, 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 the non-maintenance of the MAB. The government also said that most public sector banks have already withdrawn these penalties for savings accounts.
How much did banks collect as a 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
Among public sector banks, BoB, PNB and Indian Bank collected the highest penalties for the five financial years starting FY 21-22. State Bank of India (SBI) ranked fourth with Rs 1,600.77 crore, although the charges relate only to current accounts, as SBI waived minimum balance penalties on savings accounts from March 2020. Canara Bank collected Rs 1,524.08 crore, while Bank of India collected Rs 816.24 crore during the same period.
| 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 | 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 |
What RBI rules say on minimum balance charges
As per the RBI’s instructions, banks can levy charges for the non-maintenance of the MAB in accordance with 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 provided time to restore the required minimum balance before penal charges are applied, replied when asked on regulation of charges by banks.
