Banks collected ₹26,170 crore in minimum-balance penalties over four years; HDFC led FY26
Indian banks collected ₹7,086.63 crore in minimum-average-balance penalties in FY2025-26, taking the four-year total to ₹26,170.37 crore. HDFC Bank accounted for ₹1,798.14 crore, the highest among private banks, while 10 of 12 public-sector banks have scrapped such savings-account charges.
What happened
Indian banks collected over ₹26,170 crore in minimum-balance penalties across four fiscal years. HDFC Bank led FY2025-26 private-bank collections at ₹1,798
Key facts
- ₹26,170.37 crore total minimum-average-balance penalties collected by banks from FY2022-23 to FY2025-26
- ₹7,086.63 crore penalties collected in FY2025-26
- ₹6,974.79 crore penalties collected in FY2024-25
- ₹4,948.71 crore collected by private banks in FY2025-26
- ₹1,798.14 crore collected by HDFC Bank in FY2025-26
- ₹1,081.33 crore collected by Axis Bank in FY2025-26
- ₹2,137.92 crore collected by 12 public-sector banks in FY2025-26
- ₹477.27 crore collected by SBI
- ₹394.1 crore collected by Bank of Baroda
Why this matters
Banks and fintech partners can differentiate by offering low-balance-friendly accounts, automated balance alerts and cash-flow tools as public-sector banks remove a traditional customer pain point.
What to watch
- RBI circular, consultation or supervisory commentary on minimum-average-balance charges and disclosure norms.
- Quarterly bank disclosures showing savings-account fee income, customer complaints, CASA growth and account closures.
- Any HDFC Bank revision to average-balance thresholds, penalty slabs, waiver criteria or basic savings account distribution.
- Public-sector bank campaigns highlighting zero-balance accounts and corresponding shifts in new-account market share.
- Parliamentary questions, consumer-court rulings or government directives focused on penalty affordability and transparency.
- Expect large private banks to emphasize minimum-balance waivers tied to salary credits, digital activity, bundled products or relationship balances.
- Watch for SBI and other public-sector banks to market zero-balance savings accounts more aggressively against private-bank fee policies.
- Expect consumer groups, MPs and media to seek bank-level disclosures on penalty collections, waiver rates and affected account volumes.
- Private banks may increase focus on higher-value CASA customers and recover revenue through subscription, transaction, card and cross-sell fees rather than explicit penalty hikes.