Private banks’ minimum-balance fees top PSBs’ ₹10,230 crore haul
Parliament data show HDFC Bank, Axis Bank and ICICI Bank collected over ₹11,000 crore in savings-account minimum-balance penalties in FY23-FY26, exceeding the total collected by 12 public-sector banks. Ten PSBs have discontinued the charge.
What happened
Parliament data showed HDFC Bank, Axis Bank and ICICI Bank collected over ₹11,000 crore in minimum-balance penalties during FY23-FY26, exceeding all 12
Key facts
- ₹10,230 crore collected by 12 public sector banks for minimum-balance non-maintenance during FY23-FY26
- Over ₹5,600 crore collected by HDFC Bank
- Over ₹11,000 crore collected by HDFC Bank, Axis Bank and ICICI Bank combined
- 10 of 12 public sector banks discontinued savings-account minimum-balance penalties
- Approximately 73 crore BSBDAs, including PMJDY accounts, are exempt from such penalties
Why this matters
The widening fee-policy divide offers acquirers and partners an opportunity to position low-fee banking propositions as a customer-acquisition differentiator against private-bank incumbents.
What to watch
- RBI circular, consultation or supervisory communication on savings-account minimum-balance penalties.
- Parliamentary questions or ministry statements calling for caps, waiver mandates or standardized disclosures.
- Quarterly disclosures showing a decline in private-bank service-charge income or a rise in customer refunds and fee reversals.
- Changes in HDFC Bank, ICICI Bank or Axis Bank savings-account minimum-average-balance thresholds, penalty slabs or waiver criteria.
- CASA market-share movement toward SBI, other PSBs, small-finance banks, payments banks or fintech-led accounts.
- Complaint volumes on banking ombudsman and consumer platforms related to non-maintenance charges.
- RBI may seek updated bank-wise data on minimum-balance charges, customer communications, waiver practices and basic-account availability.
- Large private banks are likely to emphasize free digital, salary, basic savings and premium-account alternatives in customer messaging.
- Banks may increase pre-debit SMS/app alerts, grace periods and automatic account-plan conversion to reduce complaints without surrendering all fee income.
- PSBs may market zero-minimum-balance accounts more aggressively, using the contrast as a deposit-acquisition tool.
- Consumer groups and lawmakers may push for a standardized disclosure of minimum balance, penalty slabs, exemptions and annual fee incidence.