FY26: Private banks collect Rs 4,949 cr, PSBs Rs 2,138 cr for minimum balance shortfalls
Private sector banks have collected Rs 4,948.71 crore from account holders for failing to maintain minimum average balance in their current accounts and savings accounts in FY26, Parliament was informed on Tuesday.
During the period under review, public sector banks (PSBs) collected Rs 2,137.92 crore for the non-maintenance of minimum average balance (current account & savings account), Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha.
HDFC Bank collected the highest amount — Rs 1,798.14 crore, followed by Axis Bank at Rs 1,081.33 crore during FY26, he said, quoting Reserve Bank of India (RBI) data.
Both these private-sector lenders collected Rs 2,879.47 crore as charges for non-maintenance of minimum average balance. This is 58 per cent of the total collection done by 19 private-sector banks.
No penal charges are levied on Basic Savings Bank Deposit Accounts, including Pradhan Mantri Jan Dhan Yojana (PMJDY) Accounts, etc, he said.
Replying to another question, Chaudhary said the financial health of PSBs has shown significant improvement with healthy balance sheets, historically high profits and multi-decadal low level of gross non-performing assets (GNPAs). Further, PSBs have recorded sustained credit growth across different sectors of the economy, he said.
He further said that the government has introduced Emergency Credit Line Guarantee Scheme (ECLGS 5.0) in May 2026, to tide over any short-term liquidity mismatches faced by businesses due to the West Asia Crisis.
The scheme provides guarantee coverage to Member Lending Institutions (MLIs) through National Credit Guarantee Trustee Company Ltd (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers, he said.
The scheme provides 100 per cent guarantee coverage for MSMEs and 90 per cent guarantee coverage for non-MSMEs and the scheduled passenger airline sector, up to a credit flow of Rs 2,55,000 crore, which includes Rs 5,000 crore specifically earmarked for the scheduled passenger airline sector.
