Twenty-one public sector banks and three major private sector lenders collected ? 5,000 crores from customers as minimum balance penalty in 2017-18, according to banking data. India’s largest lender State Bank of India, which suffered a staggering net loss of Rs 6,547 crore during 2017-18, led the pack in penalizing its customers for not maintaining minimum account balance. It accounted for nearly half the amount collected as minimum balance penalty.
After SBI, the largest amount of minimum balance penalty during 2017-18 was collected by HDFC Bank Ltd. It charged its customers ? 590.84 crore, which is lower than ? 619.39 crores in 2016-17, the data revealed. Axis Bank collected ? 530.12 crores in the last fiscal while ICICI Bank charged ? 317.6 crore.
According to norms set by the Reserve Bank of India (RBI), banks are permitted to levy service/miscellaneous charges. Customers opening accounts under Basic Savings Bank Deposit (BSBD) scheme as well as Pradhan Mantri Jan Dhan Yojna are not required to maintain any minimum balance.