FM Sitharaman Clarifies Minimum Balance Rules for PM Jan Dhan and Basic Savings Accounts
Union Finance Minister Nirmala Sitharaman clarified that minimum account balance rules do not apply to PM Jan Dhan accounts and basic savings accounts. Responding to a query in the Rajya Sabha, Sitharaman emphasized that these rules are only enforced for accounts where customers are required to maintain a specified minimum balance.
The statement comes in light of recent data showing that public sector banks have collected substantial fines for non-maintenance of minimum balance. Over the past five years, these penalties have amounted to Rs 8,500 crore. The banks that imposed these fines include major institutions such as 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 for Finance Pankaj Chaudhary had reported last month in the Lok Sabha that public sector banks collected Rs 2,331 crore in penalties for the financial year 2023-24, marking a 25 percent increase from the previous year. Among the top contributors to this total were Punjab National Bank with Rs 633 crore, Bank of Baroda with Rs 386 crore, and Indian Bank with Rs 369 crore in penalties for non-maintenance of minimum balance.
Sitharaman’s remarks aim to clarify the scope of minimum balance rules and their applicability to various types of bank accounts.
