Public sector banks, private banks collected ₹35,000 crore for non-maintenance of minimum balance, other services
₹35,000 crore in charges since 2018, Finance Ministry told Rajya Sabha in a written reply. The banks collected the money on account of non-maintenance of minimum balance, additional ATM transactions and SMS Services Minister of State, Dr Bhagwat Karad, stated that non-maintenance of minimum balance contributed ₹21,000 crore, while excess ATM transactions generated ₹8,000 crore, and SMS services added ₹6,000 crore.
Notable banks include Axis Bank, IDBI Bank, HDFC Bank, IndusInd Bank, ICICI Bank Banks enforce fees for failing to maintain a minimum balance, exceeding free ATM transactions, and surpassing cash deposit limits. The average monthly balance (AMB) requirement, varying across locales, necessitates customers to hold a specified sum each month; penalties apply if this isn't met, a Hindu Businesslinereport said.
In metros, AMB ranges from ₹3,000 to ₹10,000, urban areas ₹2,000 to ₹5,000, and rural areas ₹500 to ₹1,000. Breaching this could incur charges of ₹400 to ₹500.
Certain private banks also impose cash transaction fees, typically ₹100 to ₹125 per transaction, in addition to AMB non-compliance charges. Karad cited, a RBI circular permits banks to fix penal charges regarding non-maintenance of minimum balance in savings account, as per their Board approved policy, while ensuring that all such charges are reasonable and not out of line with the average cost of providing the services.
Further, RBI advised banks “to ensure reasonableness and equity in the charges levied by banks for sending SMS alerts to customers and to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis," he said. On ATM transactions, Karad
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