Indian bank customers have shelled out a whopping ₹7086 crore in penalties during the 2026 financial year for failing to maintain the mandatory minimum balance in their savings and current accounts. According to the latest data released by the Reserve Bank of India (RBI), private sector banks were the primary beneficiaries of these penalty collections, pocketing more than double the amount collected by public sector lenders.

Of the total penalty amount collected, private banks amassed ₹4948.71 crore, whereas the 12 public sector banks recovered ₹2137.92 crore. This trend comes despite the fact that 10 out of the 12 state-run banks, including the State Bank of India (SBI), do not mandate a minimum balance for basic savings accounts.

Private lenders lead the charge
Among the private lenders, HDFC Bank topped the list by collecting ₹1798.14 crore from account holders who defaulted on their average monthly balance requirements. Axis Bank followed closely behind, penalising its customers to the tune of ₹1081.83 crore. Together, these two banking giants accounted for a massive 58% of the total ₹4948.71 crore collected by India's 19 private sector banks.

State-run banks and the SBI tally
On the public sector front, SBI led the penalty collections, bringing in ₹477.27 crore. While SBI and nine other public sector banks do not charge minimum balance penalties on basic savings bank deposit accounts, they still levy charges on other premium savings schemes, current accounts, and specialised corporate accounts that fall below the designated thresholds.

While the RBI allows banks to levy these fees to cover the administrative overhead of maintaining low-balance accounts, the massive scale of these penalty collections continues to spark debates among consumer rights advocates. Many argue that these charges disproportionately affect lower-income customers who struggle to maintain a steady monthly balance in their accounts.