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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Cong takes swipe at PM over India not being part of US-led 'Pax Silica' grouping
New Delh (PTI) The Congress on Saturday said it is perhaps not very surprising that India is not part of a US-led strategic initiative to build a secure silicon supply chain, given the "sharp downturn" in the Trump-Modi ties, and asserted that it would have been to "our advantage if we had been part of this group".
Congress general secretary in charge of communications Jairam Ramesh took a swipe at Prime Minister Narendra Modi, saying the news of India not being part of the group comes after the PM had enthusiastically posted on social media about a telephone call with his "once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC".
In a lengthy post on X, Ramesh said, "According to some news reports, the US has excluded India from a nine-nation initiative it has launched to reduce Chinese control on high-tech supply chains. The agreement is called Pax Silica, clearly as a counter to Pax Sinica. The nations included (for the moment at least) are the US, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia."
"Given the sharp downturn in the Trump-Modi ties since May 10th, 2025, it is perhaps not very surprising that India has not been included. Undoubtedly, it would have been to our advantage if we had been part of this group."
"This news comes a day after the PM had enthusiastically posted on his telephone call with his once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC," the Congress leader asserted.
The new US-led strategic initiative, rooted in deep cooperation with trusted allies, has been launched to build a secure and innovation-driven silicon supply chain.
According to the US State Department, the initiative called 'Pax Silica' aims to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence (AI), and ensure aligned nations can develop and deploy transformative technologies at scale.
The initiative includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. With the exception of India, all other QUAD countries -- Japan, Australia and the US -- are part of the new initiative.
New Delhi will host the India-AI Impact Summit 2026 on February 19-20, focusing on the principles of 'People, Planet, and Progress'. The summit, announced by Prime Minister Narendra Modi at the France AI Action Summit, will be the first-ever global AI summit hosted in the Global South.
Prime Minister Modi and US President Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal.
The phone call between the two leaders came on a day Indian and American negotiators concluded two-day talks on the proposed bilateral trade agreement that is expected to provide relief to India from the Trump administration's whopping 50 per cent tariffs on Indian goods.
In a social media post, Modi had described the conversation as "warm and engaging".
"We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity," Modi had said without making any reference to trade ties.
