Debit card maintenance charges levied by public sector banks in India have risen nearly 90% over the past five years, according to an analysis reported by the Times of India. The finding is based on data presented by the Ministry of Finance to the Rajya Sabha, along with separate data held by the Reserve Bank of India (RBI).
The rise in debit card charges comes alongside separate government data showing banks collected nearly ₹7,100 crore in penalties from customers in FY26 for failing to maintain the required minimum average balance (MAB) in their accounts, up from about ₹6,800 crore the previous year, according to the Times of India. Minister of State for Finance Pankaj Chaudhary shared the figures in a written reply in the Rajya Sabha on Tuesday, July 28, according to Swarajya.
Private banks accounted for nearly 70% of the total MAB penalties collected, amounting to ₹4,948 crore, with MAB charges at private lenders rising 17% in FY26, the Times of India reported. HDFC Bank alone collected nearly ₹1,800 crore in such penalties, followed by Axis Bank at ₹1,081 crore, ICICI Bank at ₹353 crore, Kotak Mahindra Bank at ₹290 crore, Yes Bank at ₹195 crore and IDBI Bank at ₹175 crore.
The government told Parliament that of the 12 public sector banks, 10 have discontinued penal charges for non-maintenance of minimum balance in savings accounts, while the remaining two have rationalised such charges in line with board-approved policies and commercial considerations, according to both the Times of India and Swarajya.
As a result, the 12 public sector banks saw their MAB collections decline to ₹2,137 crore in FY26 from ₹2,775 crore in FY25, the Times of India reported. Among public sector banks, the State Bank of India, which levies charges on current accounts, collected ₹477 crore in FY26, followed by Bank of Baroda at ₹394 crore, Indian Bank at ₹299 crore and Canara Bank at ₹213 crore.
Since FY 2021-22, public sector banks have collected nearly ₹12,000 crore in MAB charges, according to the Times of India. Data prior to FY 2022-23 is not maintained for private lenders, but they have cumulatively collected around ₹16,000 crore in such penalties since then, the report said.
The government said that in cases where customers fail to maintain the agreed minimum balance, banks have been advised by the RBI to notify customers through SMS, email, letter or other appropriate means, and that customers are generally given time to restore the required minimum balance before penal charges are applied, according to the Times of India. Further information on RBI guidelines related to bank charges is available through the Reserve Bank of India’s official website.
According to the Ministry of Finance, banks determine debit card maintenance charges and minimum balance requirements based on their board-approved policies while complying with the Reserve Bank of India’s regulatory framework. The government also informed Parliament that customers are generally notified through SMS, email, letters or other communication channels before any minimum balance penalty is imposed, giving them an opportunity to restore the required balance. The RBI has advised banks to maintain transparency in communicating such charges and to follow fair banking practices. These measures are intended to improve customer awareness and strengthen compliance with regulations governing debit card maintenance charges and account-related fees.
Together, the rise in debit card maintenance charges and continued minimum balance penalties point to a broader trend of increasing costs for retail banking customers in India, even as some public sector banks have scaled back certain fees. The available reporting did not specify individual bank-wise figures for debit card charges specifically, and no official response from the Ministry of Finance regarding that particular trend was included. The scrutiny of banking charges comes amid wider regulatory attention on the sector, including separate cases such as HDFC Bank’s penalty involving its MD and CFO.
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