Public-sector banks’ debit-card maintenance collections rise 94% in five fiscal years
India’s public-sector banks collected ₹7,563.8 crore in debit-card annual maintenance charges in FY2025-26, versus ₹3,905.5 crore in FY2021-22. Average maintenance fees per card rose 88.8% to about ₹115.1.
What happened
Indian public sector banks · Debit-card maintenance charges collected by India’s public-sector banks nearly doubled in five years, while minimum-balance fee
Key facts
- Public-sector banks collected Rs 3,905.5 crore in debit-card annual maintenance charges in FY2021-22
- Public-sector banks collected Rs 7,563.8 crore in debit-card annual maintenance charges in FY2025-26
- Debit-card maintenance-charge collections rose about 94% over five years
- Average maintenance fee per debit card rose from about Rs 61 in FY2021-22 to Rs 115.1 in FY2025-26, up 88.8%
- Banks collected Rs 7,086.6 crore for minimum-balance shortfalls in FY2025-26, up 27% from FY2022-23
- Private-bank average low-balance fee per account rose about 45%; public-sector-bank fees fell about 14%
- 10 of 12 public-sector banks eliminated savings-account minimum-balance penalties
Why this matters
The expanding debit-card fee pool makes payments platforms, card-servicing capabilities and low-cost digital engagement assets strategically more valuable to banks seeking recurring revenue growth.
What to watch
- RBI or Finance Ministry guidance on debit-card annual maintenance charges, zero-balance accounts, Jan Dhan accounts, and disclosure requirements.
- Growth or decline in active debit-card stock at public-sector banks relative to total cards issued.
- Customer complaints, ombudsman cases, and social-media scrutiny regarding automatic deductions or charges on dormant accounts.
- UPI transaction growth versus debit-card point-of-sale and ATM transaction volumes.
- Bank annual reports showing fee-income growth, card cancellation rates, and changes in average maintenance fee per active card.
- Public-sector banks push customers toward higher-fee premium debit-card tiers bundled with insurance, merchant offers, and digital-service benefits.
- Banks tighten exemptions, improve recurring-charge disclosures, and promote digital self-service for card block, replacement, and account conversion.
- Retailers and payment platforms increase UPI-linked promotions as consumers become more sensitive to bank card maintenance costs.
- Consumer advocates and opposition lawmakers seek account-level data on fees, exemptions, inactive cards, and charges levied on financially vulnerable customers.