Universal Banking: No Penal Charges for Basic Savings

Finance Minister Nirmala Sitharaman stated that around 72 crore Basic Savings Bank Deposit Accounts (BSBDA), including those via the Pradhan Mantri Jan Dhan Yojana, incur no penal charges for failing to maintain a minimum balance. This statement was made in a written response to a Lok Sabha inquiry.

These accounts are designed to promote financial inclusion by providing easy access to banking services, particularly for unbanked and vulnerable individuals. BSBDAs facilitate zero-balance savings accounts, allowing depositors free access to essential banking services like deposits, withdrawals, and ATM use without extra cost.

However, other account types may incur charges for failing to meet the Minimum Monthly Average Balance in line with bank policies and Reserve Bank of India guidelines. From 2022 to 2025, Public Sector Banks collected Rs 8,092.83 crore from such charges, yet this represents a small fraction of their total income, reflecting a focus on service provision over revenue through penalties.