Millions of bank customers across Indiister of India, informed Parliament that about 72 crore Basic Savings Bank Deposit Accounts (BSBDAs) are currently active in the country.
These accounts do not require customers to maintain a minimum balance.
The category also includes accounts opened under the Pradhan Mantri Jan Dhan Yojana.
The main goal of these accounts is to bring poor families, small depositors, and people without banking access into the formal banking system.
Zero-Balance Accounts With Basic Banking Services
According to Nirmala Sitharaman, a Basic Savings Bank Deposit Account (BSBDA) can be operated as a zero-balance account.
This means customers do not have to keep any minimum amount in their accounts.
Despite this, account holders can still use essential banking services such as:
Depositing money
Withdrawing cash
Using ATM facilities
All these services are available without additional charges.
The government says the aim is to make banking services accessible to everyone, especially people from weaker financial backgrounds.
72 Crore Accounts Free From Minimum Balance Penalty
The Finance Minister stated in Lok Sabha that there are around 720 million BSBDA accounts in the country.
None of these accounts attract penalties for failing to maintain a minimum balance.
This step is meant to encourage financial inclusion, allowing small depositors and economically weaker sections to use banking services without worrying about penalty charges.
Minimum Balance Rules in Regular Accounts
For regular savings and current accounts, banks usually require customers to maintain a Minimum Monthly Average Balance (MAB).
If the balance falls below the required level, banks may charge a penalty.
However, these charges must follow guidelines set by the Reserve Bank of India and must remain transparent and reasonable.
Banks Collected ₹8,092 Crore in Penalties
The government also shared data about penalties collected by public sector banks.
Between financial years 2022–23 and 2024–25, public sector banks collected around ₹8,092.83 crore from customers who failed to maintain the required minimum balance in savings or current accounts.
However, the government clarified that this amount represents only 0.3 percent of the total income of commercial banks, meaning it forms a very small part of their earnings.
Several Banks Have Already Removed These Charges
The government says such charges are mainly meant to cover the cost of banking services, not to increase bank profits.
In recent years, several banks have revised their policies in favor of customers.
For example, State Bank of India removed penalties for not maintaining the minimum balance in savings accounts in March 2020.
By 2025, nine public sector banks had completely removed these penalties, while two banks reduced the charges.
According to the government, these steps will make the banking system more customer-friendly and help strengthen financial inclusion, especially for people with small savings or irregular income.
