Bhubaneswar: Public Sector Banks (PSBs) in India have collectively collected over ₹8,000 crore in penalties from customers for failing to maintain minimum balance requirements over the last three financial years, according to official data.
Among the 12 PSBs, Punjab National Bank (PNB) accounted for the highest share, collecting more than ₹1,500 crore, nearly 20% of the total amount. Bank of Baroda followed with around 16%, while Indian Bank accounted for approximately 14% of the collections.
In addition to minimum balance penalties, PSBs also charged customers ₹3,388 crore for SMS alert services during the same period. Notably, the State Bank of India (SBI) waived SMS alert charges in 2020, offering some relief to its account holders.
The figures have drawn attention amid ongoing debates on banking inclusivity, particularly as Jan Dhan accounts—which do not require minimum balance maintenance—have significantly expanded access to basic banking services. While these zero-balance accounts have helped mitigate the impact on economically weaker sections, the scale of penalty and service charge collections from regular savings accounts remains substantial.
Banking experts note that such charges disproportionately affect low-income and vulnerable customers, especially those with irregular cash flows. Consumer groups have repeatedly called for greater transparency, rationalisation of fees, and stronger safeguards to prevent excessive charges.
The data once again brings into focus the balance between banks’ operational costs and the need to ensure fair, affordable, and inclusive banking in a system where PSBs play a dominant role.
-OdishaAge
