Government Earns Billions From Minimum Balance Account Penalties: Find Out How Much Each Bank Made | Paisa Live

In the past five years, public sector banks in India have earned ₹8,500 crores from minimum balance penalties. Despite the largest public sector bank, SBI, discontinuing the collection of minimum balance penalties from the financial year 2020, the total amount collected by public banks has still increased by 38% during this period. This growth reflects the significant revenue generated from penalties imposed on customers who do not maintain the required minimum balance. The rise in penalty revenue indicates a substantial impact on both the banks' earnings and their customers' financial management practices. Even with SBI's move to eliminate these penalties, the overall trend shows a growing reliance on such fees by other public sector banks.