Non-maintenance of the minimum balance in bank accounts has helped banks collect Rs.5,000 crore in the form of penalties, as per a report by NDTV Profit. The data was for 24 banks, which included three private lenders and 21 public sector banks.
The amount collected was for the year 2017-18. In terms of the highest amount collected by an individual bank, SBI collected a whopping Rs.2,433.67 crore, with HDFC bank collecting a sum of Rs.590 crore. Axis Bank and ICICI Bank collected Rs.530 crore and Rs.317.6 crore respectively.
SBI, which had discontinued the practice of charging a penalty for non-maintenance of the minimum balance reintroduced it in the last financial year.
As per a report by The Hindu Business Line, an amount in excess of Rs.11,500 crore was collected by banks over the last 4 years (for non-maintenance of the minimum balance).
Reserve Bank of India norms have a provision for banks to levy miscellaneous charges, including charges for non-maintenance of the minimum balance. However, banks are to inform customers about the same and ensure transparency in the process.
Different banks have different fine structures in place for non-maintenance of the minimum balance. For example, the minimum balance required for SBI accounts in Urban areas is Rs.3,000, with fines ranging from Rs.10/month to Rs.15/month (excluding GST).
There are, however, a few accounts such as pension accounts, Jan Dhan accounts, etc. which are exempt from minimum balance requirements.
Sources: NDTV Profit, FirstPost, The Logical Indian
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