Private sector banks collected ₹4,948.71 crore in FY26 as penalties from customers for not maintaining the minimum average balance (MAB) in their savings and current accounts, while public sector banks (PSBs) collected ₹2,137.92 crore during the same period.
In total, banks earned over ₹7,086 crore through such charges, as informed by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha. He also noted that out of 12 PSBs, 10 have removed penalties for not maintaining MAB in savings accounts, while the remaining two have reduced and rationalised these charges as per their internal policies.
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