Banks earned ₹5,000 Cr from us for not maintaining ‘Min balance’ in 2018

It seems that people face headaches due to Bank’s rules and regulations. We usually store money in the bank. You might have noticed money debited from your account if you don’t maintain your minimum balance. This happens to anyone who holds a bank account in this country.

Every bank has their own set of rules and procedures. Well, you would be shocked to know how much the Indian banks earned from us. As many as 21 public sector banks and 3 major private sector lenders collected 5000 crores from the people who failed to maintain a minimum balance in their account in 2017-18, according to banking data.

Credits: The Financial Express via PTI

India’s largest lender State Bank of India experienced a major net loss of Rs 6,547 crore during the 2017-18 and it penalised customers for not maintaining minimum account balance. SBI re-introduced penalty on deposits going down the monthly average balance basis from April 2017, collected around half the amount raised by the 24 banks put together (Rs 4,989.55 crore) i.e Rs 2,433.87 crore.

After SBI, the next largest amount of charges for not maintaining minimum balance during the 2017-18 was collected by HDFC Bank. It collected Rs 590.84 crore, which is comparatively lower than Rs 619.39 crore in 2016-17, the data disclosed. After HDFC bank, Axis Bank follow next on the list with Rs 530.12 crore in the last fiscal whereas ICICI Bank collected Rs 317.6 crore.

Customers who are opening accounts under Basic Savings Bank Deposit (BSBD) scheme and Pradhan Mantri Jan Dhan Yojna are not really required to maintain any minimum balance.

Chaithanya G
Hailing from Chennai, Chaithanya G is the Managing Director of TheYouth. He has dedicated his whole life to reading and writing.