New Delhi :
Finance Minister Nirmala Sitharaman clarified on Tuesday that maintaining a minimum balance is not required for Jan Dhan and basic savings accounts.
She emphasized that penalties are only imposed on other types of accounts where customers fail to meet the minimum balance requirements.
This statement came in response to a query during Question Hour in the Rajya Sabha about the collection of approximately Rs 8,500 crore in penalties by public sector banks over the past five years.
Clarification on Penalties for Minimum Balance
Sitharaman explained that the rule for maintaining a minimum balance does not apply to Pradhan Mantri Jan Dhan accounts or basic accounts intended for low-income individuals.
These accounts are exempt from such requirements, and penalties are applicable only to accounts where maintaining a minimum balance is expected.
Significant Penalty Collections by Public Sector Banks
According to a written reply in the Lok Sabha,
public sector banks recovered around Rs 8,500 crore in penalties over the past five years for not maintaining the minimum balance.
Minister of State for Finance, Pankaj Choudhary,
also reported last month that these banks collected Rs 2,331 crore in penalties for the financial year 2023-24 due to failure in maintaining the average monthly minimum balance.
