Last Updated on 01/08/2024 by wccexam Desk
Most banks impose a condition of keeping a fixed minimum balance in the bank account. Banks charge a fixed amount as penalty from those who fail to maintain this balance. Now, the information given by Minister of State for Finance Pankaj Chaudhary in response to a question in Parliament has revealed the amount collected from customers as minimum balance penalty during the last 5 years.
According to this, the government banks of the country have collected Rs 8.5 thousand crores from the customers as minimum balance penalty in the last five years. This amount has been received by the banks during 2019-20 to 2023-24. However, it is interesting to know here that the country’s largest government bank SBI had stopped collecting minimum balance penalty from 2019-20 itself. But despite SBI stopping this recovery, the minimum balance penalty of government banks has increased by 38 percent in the last 5 years.
SBI does not charge penalty
The method of calculating minimum balance penalty of government banks is different. According to the information, out of 11 government banks, six have collected penalty from customers for not maintaining minimum quarterly average balance, while four banks have imposed penalty on customers for not maintaining minimum average monthly balance.
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The minimum balance limit for customers is different in cities and villages. For example, the minimum quarterly average balance in savings account for urban customers of Punjab National Bank is Rs 2,000, while for towns it is Rs 1,000 and for villages it is Rs 500. If the minimum balance is not maintained, Rs 250 can be deducted in cities, Rs 150 in towns and Rs 100 in villages.
Information given in Parliament
If we talk about the country’s largest public sector bank SBI, the bank earned Rs 640 crore from minimum balance penalty in 2019-20, but after that the bank abolished this rule. Whereas in 2023-24, Punjab National Bank earned Rs 633 crore from this penalty, Bank of Baroda Rs 387 crore, Indian Bank Rs 369 crore, Canara Bank Rs 284 crore and Bank of India Rs 194 crore.
While giving this information, Minister of State for Finance Pankaj Chaudhary has said that banks should inform customers about the minimum deposit amount while opening an account. Along with this, if the customer does not maintain the minimum balance, then the banks should inform the customer about the penalty.