No penalty for zero-balance Jan Dhan, basic savings accounts: FM

Metro India News | NEW DELHI

Finance Minister Nirmala Sitharaman on Monday clarified that around 72 crore Basic Savings Bank Deposit Accounts (BSBDA), including those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), are not subject to any penal charges for not maintaining a minimum balance.

In a written reply to the Lok Sabha, she said these zero-balance accounts ensure universal access to banking services, particularly for unbanked, vulnerable, and small depositors, promoting financial inclusion. Account holders receive basic banking facilities such as deposits, withdrawals, and ATM access free of charge.

For other types of savings accounts, banks may levy penalties for not maintaining the Minimum Monthly Average Balance (MAB) as per board-approved policies and RBI guidelines. These charges are designed to be reasonable, transparent, and broadly in line with the cost of providing services.

From FY 2022–23 to FY 2024–25, public sector banks (PSBs) collected ₹8,092.83 crore in MAB-related charges, accounting for just 0.23% of their total income, indicating that such penalties contribute minimally to revenue.

To further boost customer-friendly banking, PSBs have reviewed service charges: SBI waived penal charges for non-maintenance of MAB in savings accounts from March 2020, while nine other PSBs have also waived penalties and two have rationalized charges in 2025. Sitharaman emphasized that these measures aim to enhance inclusive banking and strengthen access to financial services for all sections of society.