₹26,000 Crore in Penalties: Is Your Bank Robbing You?

Indian banks have collected over ₹26,000 crore in minimum balance penalties in four years. Private banks charge the most. Here's how to stop paying these hidden fees starting today.

Here's what happened: Indian banks collectively earned ₹26,000 crore over four years solely from penalties charged when savings accounts fall below minimum balance limits.. Private sector banks drove the majority of these collections — their minimum balance requirements and penalty slabs are significantly stricter than public sector banks.. Most public sector banks, including SBI, have already scrapped minimum balance charges on regular savings accounts, but private banks have largely kept them in place..

What you should do: Check your bank's minimum balance requirement right now — log into your net banking and look under 'account details' or 'terms and charges'.. Review your last 6 months of bank statements and add up every 'non-maintenance charge' or 'MAB penalty' you've been quietly paying.. Switch to a zero-balance savings account (available at SBI, most public sector banks, and RBI-regulated small finance banks like AU, ESAF, or Jana) if you can't maintain the minimum balance consistently..

Opening a BSBD (Basic Savings Bank Deposit) account at any RBI-regulated bank gives you zero minimum balance requirements by law — no penalties, ever, on that account type.

If you're dealing with recovery agents, read our recovery agent harassment guide covering your RBI rights.