Banks Collected ₹4,818 Crore for Not Maintaining Minimum Balance; Parliament Expresses Concern

• Indian banks collected ₹4,818 crore in FY24-25 from customers for not maintaining Minimum Average Balance (MAB).
• A parliamentary committee, led by BJP MP Chandra Prakash Joshi, expressed concern over excessive penalties, especially for economically weaker sections.
• Private banks, including HDFC Bank, Axis Bank, and ICICI Bank, accounted for a larger share of the collections, totaling ₹2,772.2 crore.
• The committee suggested abolishing strict penalty policies, treating balance deficits as 'loans' with reasonable interest, and capping penalties.
• Some public sector banks like SBI and PNB have abolished minimum balance penalties or adopted a 'no minimum balance' policy.