North News
New Delhi, July 31
Leader of Opposition Rahul Gandhi has sharply criticized the government for imposing hefty penalties on accounts failing to maintain average balances in public sector banks (PSBs). Gandhi described these penalties as a significant burden on the common man. The criticism follows data revealing that 12 PSBs collected approximately Rs 8,500 crore in penalties from customers between 2019-20 and 2023-24 for not maintaining average monthly balances, according to the news outlet Business Standard report.
The news outlet report said that the data, disclosed in response to questions from MPs V Selvaraj, K Subbarayan, and Mala Roy in the Lok Sabha, highlights the financial impact of these charges. Minister of State for Finance Pankaj Chaudhary further informed the Lok Sabha that PSBs charged Rs 2,331 crore in penalties during FY24 alone for non-maintenance of average monthly minimum balances. This underscores the significant financial burden on customers across the country.
Providing details, the Business Standard reported that pPenalties for low balances vary by bank. For example, Punjab National Bank requires a minimum quarterly average balance (QAB) of Rs 2,000 in urban and metro areas, Rs 1,000 in semi-urban areas, and Rs 500 in rural areas, with penalties ranging from Rs 100 to Rs 250. Bank of Baroda imposes quarterly penalties of Rs 250 for urban and metro branches and Rs 125 for rural and semi-urban branches, with charges escalating based on the QAB range. In contrast, the State Bank of India has waived penalties for non-maintenance of average monthly balances in savings accounts since 2020, the news outlet report said.
