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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Two injuries, one DNF, a DQ as India end messy World Relays campaign
Gaborone (Botswana) (PTI): Amoj Jacob and Ragul Kumar got injured during the men's 4x400m and 4x100 races respectively as India ended their World Athletics Relays campaign in disappointment on the second day of competitions here on Sunday.
The Indian camp had high hopes of making the 2027 World Championships in the men's 4x400m relay but the team did not finish (DNF) the race as Jacob suffered cramps and pulled out of the race after taking the baton from the first leg runner Dharamveer Choudhary. Rajesh Ramesh and Vishal TK were to run in the third and fourth legs.
Those teams which could not qualify for the 2027 Beijing World Championships by reaching the final round of each of the six relay events on Saturday were given another chance in the second qualification round on Sunday.
The top two teams in each of the two heats (in all six relay events) booked the Beijing ticket on Sunday.
India will now have to try and qualify for the World Championships through the Top Lists of the World Athletics, which is a long and tedious process.
In the men's 4x100m race, third leg runner Ragul Kumar fell down the track after failing to hand over the baton inside the exchange zone to fourth leg runner Gurindervir Singh, which clearly showed the lack of coordination among the runners.
Harsh Santosh Raut and Animesh Kujur ran the first two legs.
The Indian quartet was disqualified and Kumar was seen being taken away from the Field of Play with the help of the volunteers.
It was a comedy of errors in the case of the women's 4x100m race, which saw the baton being dropped during an exchange between first leg runner Tamanna and second runner Nithya Gandhe, though the Indians finished the race in 53.09 seconds.
Gandhe started running quite a distance, but after realising that the baton was not in her hand, she turned and ran back to pick it up.
The only silver-lining for the Indian contingent was the national record time in the mixed 4x100m relay race, though the quartet of Ragul Kumar, Nithya Gandhe, Animesh Kujur and Sneha SS finished sixth in heat number two with a time of 41.35 seconds, bettering the previous national mark of 42.30 seconds set in March in Chandigarh.
The mixed 4x400m relay quartet of Theerthesh P Shetty, Kumari Saloni, Nihal William and Rashdeep Kaur ended at fifth in heat number one with a time of 3 minutes and 19.40 seconds.
On Saturday, all the five Indian relay teams had failed to make it to the respective final rounds and thus missed out on the 2027 World Championships berths.
