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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Separate nodal officer in all districts to prevent female foeticides in Karnataka: Minister
Belagavi (PTI): Accepting that the female foeticide has not stopped in the state, Karnataka Health Minister Dinesh Gundu Rao on Tuesday said that the government is taking strict measures to prevent it.
The minister said the government is appointing separate nodal officers in all districts and tightening measures to prevent foeticide, which he called a "social evil".
He also assured that the government will consider strengthening legislation to control such activities.
The minister was responding to a question by BJP MLC C T Ravi in the Legislative Council.
"Female foeticides have certainly not stopped. If you look at the sex ratio, there is a lot of difference. I accept that this is happening," Rao said.
"Foeticides are not happening under pressure; voluntarily, it is happening, for not wanting a girl child. These things are happening based on the sex determination of the foetus at some hospitals. Sex determination is illegal, but with the advancement in technology, portable ultrasound machines have been developed, which can be easily carried anywhere, and scans and tests can be done. This needs to be controlled. We will bring it to the notice of the central government," he said.
In some districts and in a few hospitals, a higher number of male child births is happening. It is found with the help of intelligence input, the minister said.
"Information is being gathered on the taluk in which the male-female ratio is worsening, what is happening in which hospital, and appropriate action is being taken to crack down on such a network, after proper evaluation."
Decoy operations have been done at seven places in the last two years, to identify those involved in illegal activities linked to female foeticides, and actions have been taken against officials and hospitals involved, he said, adding that more needs to be done on priority.
Responding to a question by Ravi about whether any stringent legislation is being brought, Rao said, the government will consider strengthening the legislation and making it stricter to control this.
"Some amendments have been made to the existing laws in the last two years....advanced technology and the internet is being used to carry out such things, also oral medicines for abortions are available over the counter.
We need to look into bringing legislation to control them. The Food and Drug Administration has issued instructions to pharmacists that the sale of such drugs should be documented."
The minister also said that measures are also being taken for the effective implementation of the Pre-Conception and Pre-Natal Diagnostic Techniques (PC & PNDT) Act, and awareness is being created against the identification of female foetuses and female foeticide.
