Basic savings, Jan Dhan accounts not subject to penalty for non having minimum balance

New Delhi: About 72 crore Basic Savings Bank Deposit Accounts (BSBDA), including those under the PM Jan Dhan scheme, are not subject to any penal charges for non-maintenance of minimum balance, Finance Minister Nirmala Sitharaman said on Monday.

In a written reply to a question in the Lok Sabha, she said banks offer zero-balance savings accounts facility in Basic Savings Bank Deposit Accounts (BSBDAs), including the accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), to ensure universal access to banking facilities, particularly for unbanked, vulnerable and small depositors, and to promote financial inclusion.

These accounts do not require maintenance of any minimum balance, and the account holders are provided basic banking services such as deposits, withdrawals and ATM access free of charge, without levy of any penal charges.

“Approximately 72 crore BSBDAs, including PMJDY accounts, are not subject to any penal charges for non-maintenance of minimum balance,” Sitharaman said.

For other accounts, banks may levy charges for non-maintenance of Minimum Monthly Average Balance (MAB) in accordance with their board-approved policies and the extant instructions of the Reserve Bank of India (RBI), which require that such charges be reasonable, transparent and broadly aligned with the cost of providing the services.

During FY 2022–23 to FY 2024–25, Public Sector Banks (PSBs) have collected Rs 8,092.83 crore from current account and savings account holders on account of non-maintenance of MAB.

“The amount of Rs 8,092.83 crore collected over the last three financial years constitutes approximately 0.23 per cent of the total income of Public Sector Banks during the same period, indicating that such charges form only a very small proportion of banks’ income and are primarily aligned with the cost of providing banking services rather than revenue generation through penalties,” Sitharaman said.

To further enhance customer centricity and promote inclusive banking, PSBs have reviewed their service charge structures. In accordance with board-approved policies and commercial considerations, SBI had completely waived off penal charges for non-maintenance of minimum MAB in savings accounts since March 2020.

In 2025, nine PSBs have waived off such charges and two rationalised minimum balance charges.