Banks Collect ₹8,500 Crore in Penalties for Low Balances: PNB Tops the List

New Delhi: In a written statement to the Lok Sabha, the central government revealed that banks have collected a staggering ₹8,500 crore in penalties from customers for not maintaining minimum balances in their accounts over the past five years. Punjab National Bank (PNB) has emerged as the highest collector of such penalties.

According to the official data presented in Parliament, various banks imposed these penalties on account holders who failed to meet the stipulated minimum balance requirements. The government's response was in answer to a query regarding the penalties charged by banks for non-maintenance of minimum balances.

Punjab National Bank, one of India's largest public sector banks, has led the charge in collecting these penalties. Experts believe that while this has become a significant source of revenue for banks, it places an undue burden on common customers, who often struggle to maintain the required balances due to financial constraints.

The government also disclosed that in addition to minimum balance penalties, banks have levied various other charges over this period, including account closure fees, debit card fees, and other service charges. This widespread imposition of fees has sparked discontent among the public and has become a topic of social and political debate.

The collection of ₹8,500 crore in penalties over the past five years for non-maintenance of minimum balances underscores the significant impact of these charges on ordinary customers. There is a growing call for banks and regulatory authorities to reconsider these policies and take steps to protect the interests of account holders.