Sustaining a minimal steadiness in a checking account is essential, as each account holder is aware of. Like non-public banks, authorities banks additionally impose hefty prices for not sustaining the minimal steadiness. Over the previous 5 years, authorities banks have earned roughly ₹8,500 crore from varied fines, penalties, and different prices—an quantity near $100 million. Right here’s a take a look at the totally different prices banks levy and why they’re vital.
Prime Authorities Banks Charging the Most
India’s largest public sector financial institution, SBI, stopped charging for non-maintenance of minimal steadiness after 2019-20. Regardless of this, different authorities banks proceed to make important earnings from varied prices. In keeping with knowledge offered within the Lok Sabha by the Ministry of Finance, the highest 5 authorities banks which have made probably the most from these prices are:
Punjab Nationwide Financial institution (PNB)
Financial institution of Baroda
Indian Financial institution
Canara Financial institution
Financial institution of India
Moreover, 11 different authorities banks, together with Union Financial institution of India, Punjab & Sind Financial institution, UCO Financial institution, Financial institution of Maharashtra, and Central Financial institution of India, additionally impose these prices.
Sorts of Costs Levied by Banks
Authorities banks cost account holders for the next:
Minimal Steadiness Costs: Many banks cost charges on a quarterly or month-to-month foundation for not sustaining the typical minimal steadiness. For financial savings accounts, this charge can vary from ₹100 to ₹250, whereas for present accounts, it may be between ₹400 to ₹600.
Documentation Costs: Charges charged through the mortgage course of or when opening an account for dealing with documentation.
Assertion Costs: Charges for requesting copies or duplicates of financial institution statements.
Default Cost Costs: Penalties imposed for defaulting on any funds.
Overdraft Restrict Costs: Charges for withdrawing more cash than the overdraft restrict permits.
Mortgage Costs: Costs for not submitting steadiness sheets or for not renewing papers associated to loans.
The coverage of imposing fines for not sustaining the minimal steadiness is a major income supply for banks. It’s important for account holders to grasp their financial institution’s phrases and circumstances and keep their accounts accordingly. Being conscious of financial institution prices and taking steps to keep away from them is the accountability of each account holder.
