Union Finance Minister Nirmala Sitharaman clarified on Wednesday that minimum account balance rules do not apply to PM Jan Dhan Yojana (PMJDY) accounts or basic savings accounts. This exemption means that these types of accounts do not require customers to maintain a minimum balance.
In response to a question in the Rajya Sabha, Sitharaman stated, “Minimum account balance rules are not applicable to PM Jan Dhan accounts or basic savings accounts. These rules apply only to bank accounts that require customers to keep a specified minimum balance.” This statement addressed concerns over the Rs 8,500 crore collected in penalties by public sector banks over the past five years for non-maintenance of minimum balance.
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Several government banks have imposed fines for not maintaining the required minimum balance. These include Punjab National Bank, Bank of Baroda, Bank of India, Punjab and Sind Bank, Union Bank of India, UCO Bank, Indian Bank, Canara Bank, Bank of Maharashtra, and Central Bank of India.
Minister of State (MoS) for Finance, Pankaj Chaudhary, had previously reported to the Lok Sabha that public sector banks collected Rs 2,331 crore in fines during the financial year 2023-24 alone. Specifically, Punjab National Bank collected Rs 633 crore, Bank of Baroda Rs 386 crore, and Indian Bank Rs 369 crore in penalties for non-maintenance of minimum balance.
“This amount was 25 per cent more than the amount from last year,” the MoS said.
The Finance Minister’s comments aim to clarify the scope of minimum balance rules and the types of accounts they affect.
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