NEW DELHI: Banks collected nearly Rs 7,100 crore as penalties from customers for failing to maintain minimum average balance (MAB) in their accounts in financial year 2025-26, up from around Rs 6,800 crore in the preceding year, government has told Parliament. Nearly 70% of the charges, adding up to Rs 4,948 crore, were collected by private banks, which saw MAB charges rise by 17% in FY26.HDFC Bank alone collected nearly Rs 1,800 crore, followed by Axis Bank (Rs 1,081 crore). ICICI Bank levied Rs 353 crore, Kotak Mahindra Bank Rs 290 crore, Yes Bank Rs 195 crore and IDBI Bank Rs 175 crore.Govt said that of the 12 public sector banks (PSBs), 10 have discontinued penal charges for non-maintenance of MAB in savings accounts, while two have rationalised it in accordance with their board-approved policies and for commercial considerations.As a result, the 12 PSBs saw a decline in their MAB collections during FY26 to Rs 2,137 crore from Rs 2,775 crore in 2024-25. Among PSBs, State Bank of India (SBI), which levies charges on current accounts, collected Rs 477 crore in FY26, followed by Bank of Baroda (Rs 394 crore), Indian Bank (Rs 299 crore) and Canara Bank (Rs 213 crore).Starting financial year 2021-22, PSBs have collected nearly Rs 12,000 crore as MAB charges. Though data prior to financial year 2022-23 is not maintained for private lenders, they have cumulatively collected around Rs 16,000 crore since then as penalties from customers.“In cases of non-maintenance of the agreed minimum balance in accounts, banks have been advised by 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,” said government.
