PSBs collect ₹8,500 crore in penalties for non-maintenance of minimum balance between FY20 and FY24
New Delhi: Despite the State Bank of India's decision to waive penalties for non-maintenance of minimum balance from FY20, Public Sector Banks (PSBs) have seen a significant rise in collections under this head. According to data presented by Minister of State for Finance Pankaj Chaudhary in a written response to an un-starred question in the Lok Sabha, PSBs collected approximately ₹8,500 crore in penalties over the last five years, marking an increase of over 34 percent.
Of the 11 PSBs, several banks including Punjab National Bank, Bank of Baroda, Bank of India, Punjab & Sind Bank, Union Bank of India, and UCO Bank impose penalties for not maintaining the required Quarterly Average Balance (QAB). Conversely, Indian Bank, Canara Bank, Bank of Maharashtra, and Central Bank of India levy penalties for non-maintenance of the Average Monthly Balance (AMB).
The penalty collection mechanisms vary among PSBs. For instance, Punjab National Bank mandates a minimum QAB of ₹2,000 in urban & metro areas, ₹1,000 in semi-urban areas, and ₹500 in rural areas. Failing to maintain these balances can result in penalties ranging from ₹100 to ₹250 based on the geographical location.
For current accounts at Punjab National Bank, the minimum QAB requirements are ₹1,000 for rural areas, ₹2,000 for semi-urban areas, ₹5,000 for urban areas, and ₹10,000 for metro areas. Penalties for non-maintenance can range between ₹400 and ₹600, depending on the location.
Similarly, Canara Bank requires a savings account customer to maintain an AMB of ₹2,000 in urban and metro areas, ₹1,000 in semi-urban areas, and ₹500 in rural areas. The penalties for shortfall in these regions range from ₹25 to ₹45, along with GST. For current accounts, the AMB requirements are ₹1,000 in rural areas, ₹2,000 in semi-urban areas, ₹5,000 in urban areas, and ₹7,500 in metro areas. Penalties for shortfalls in these accounts are ₹60 per day, subject to a maximum of ₹500 per month, along with GST.
Minister Chaudhary emphasized the necessity for banks to inform customers about the minimum balance requirements upon opening an account and to notify them of any changes. Banks are also required to inform customers about penal charges if the minimum balance is not maintained and to ensure that savings accounts do not turn negative solely due to penalties for non-maintenance of minimum balance.
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PM Modi embarks on tour of UAE, Europe
New Delhi (PTI): Prime Minister Narendra Modi on Friday embarked on a six-day tour of the United Arab Emirates (UAE), the Netherlands, Sweden, Norway and Italy to enhance bilateral ties amid the ongoing geopolitical upheaval.
Safeguarding energy flows, mitigating trade disruptions from the West Asia crisis and enhancing cooperation in critical technologies are expected to be the key focus of the trip.
Over the next six days, the prime minister will engage with several world leaders across a wide-ranging agenda aimed at strengthening India's global partnerships, External Affairs Ministry spokesperson Randhir Jaiswal said on social media.
PM Modi's first destination will be the UAE, where he will hold wide-ranging talks with President Sheikh Mohamed bin Zayed Al Nahyan with a focus on advancing the India-UAE comprehensive strategic partnership and exchange views on the West Asia conflict.
The prime minister will be in the Gulf nation for around four hours before embarking on the trip to Europe.
Following the Modi-Al Nahyan talks, India and the UAE are expected to firm up two significant pacts to boost cooperation in areas of liquefied petroleum gas (LPG) and strategic petroleum reserves.
The escalating conflict between the US and Iran has severely destabilised global energy markets, primarily due to Tehran's blockade of the Strait of Hormuz -- a vital transit chokepoint through which approximately 20 per cent of the world's total petroleum supply flows.
PM Modi and President Al Nahyan are also expected to deliberate on boosting bilateral trade and investment ties.
The UAE is India's third-largest trade partner and its seventh-largest source of investment cumulatively over the past 25 years. With the UAE hosting over 4.5 million - strong Indian community, the visit will also be an opportunity to discuss their welfare, officials said.
On the second leg of his trip, Modi will visit the Netherlands from May 15 to 17. It will be his second trip to the Netherlands after 2017.
Modi will meet King Willem-Alexander and Queen Máxima, and hold talks with Prime Minister Rob Jetten.
The MEA said Modi's visit will provide an opportunity to further deepen and expand the multi-faceted partnership.
The Netherlands is one of India's largest trade destinations in Europe, with bilateral trade worth USD 27.8 billion in 2024-25. The European nation is India's fourth-largest investor with a cumulative foreign direct investment of USD 55.6 billion.
Modi's visit will build on the momentum of high-level engagements and close cooperation spanning diverse sectors, including defence, security, innovation, green hydrogen, semiconductors and a Strategic Partnership on Water, the officials said.
From the Netherlands, the prime minister will travel to Sweden at the invitation of his Swedish counterpart Ulf Kristersson for a two-day trip from May 17 to 18.
Modi had earlier visited Sweden in 2018 for the first-ever India-Nordic Summit.
The prime minister is scheduled to hold bilateral talks with PM Kristersson to review the entire gamut of bilateral relations and explore new avenues of cooperation to enhance bilateral trade, which reached USD 7.75 billion in 2025.
In their talks, the two sides are set to focus on boosting bilateral ties in areas of green transition, artificial intelligence (AI), emerging technologies, startups, resilient supply chains, defence, space, climate action and people-to-people ties, according to the MEA.
The two prime ministers will also address the European Round Table for Industry, a leading pan-European business leaders forum, along with Ursula von der Leyen, President of the European Commission, the officials said.
In the fourth leg of his visit, Modi will undertake a visit to Norway from May 18 to 19 to attend the third India-Nordic Summit as well as to hold bilateral talks with the leadership of the country.
This will be the first visit of PM Modi to Norway. It will mark the first visit by an Indian prime minister to Norway in 43 years.
Modi will call on King Harald V and Queen Sonja, and hold bilateral talks with Prime Minister Jonas Gahr Støre.
He will also address the India-Norway Business and Research Summit along with the Norwegian prime minister, the MEA said.
"The visit will provide an opportunity to review the progress made in India-Norway relations and explore avenues to further strengthen them, with a focus on trade and investment, capitalising on the India-EFTA Trade and Economic Partnership Agreement, as well as on clean and green tech and blue economy," it said.
The European Free Trade Association (EFTA) nations are Iceland, Liechtenstein, Norway and Switzerland.
The third India-Nordic summit will take place in Oslo on May 19 and it will be joined by Modi and his counterparts from Norway, Denmark, Finland, Iceland and Sweden.
It will build upon the two previous summits held in Stockholm in April 2018 and in Copenhagen in May 2022, and is expected to impart a more strategic dimension to India's relationship with the Nordic countries.
On the final leg of his visit, PM Modi will undertake an official visit to Italy from May 19 to 20 at the invitation of his Italian counterpart Giorgia Meloni.
PM Modi had last visited Italy in June 2024 for the G7 Summit.
During the visit, he will call on President Sergio Mattarella and hold talks with PM Meloni.
The visit takes place in the backdrop of a strong momentum in bilateral ties with both sides proactively implementing the joint strategic action plan 2025-2029, a comprehensive road map for cooperation in various sectors, the MEA said.
The India-Italy bilateral trade reached USD 16.77 billion in 2025.
The focus of Modi's trip to Italy is likely to be to bolster ties in areas of investment, defence and security, clean energy, innovation, and science and technology.
