Big Relief for 72 Crore Account Holders: No Minimum Balance Penalty on BSBDA Accounts

• Finance Minister Nirmala Sitharaman announced 72 crore Basic Savings Bank Deposit Accounts (BSBDA), including PMJDY, are exempt from minimum balance penalties.
• BSBDA accounts are zero-balance, offering basic banking services like deposits, withdrawals, and ATM facilities without charges.
• This move aims to promote financial inclusion for the poor, small depositors, and those without banking access.
• While regular accounts still have minimum balance rules, SBI abolished penalties in March 2020, and nine other PSBs followed by 2025.
• Public sector banks collected ₹8,092.83 crore in fees from 2022-23 to 2024-25, but this is 0.23% of total income, meant to balance service costs.