Business

In FY 2017-18, Banks Fined Depositors Rs 5000 Crore For Not Maintaining Minimum Account Balance

JAVED SAIFI | 0
3448
| August 5 , 2018 , 10:54 IST

In the fiscal year, 2017-18 Banks have earned Rs 5000 crore from depositors for not maintaining the minimum account balance requirement, media reported on Sunday.

It is the amount of money charged by banks when a depositor fails to maintain the minimum balance requirement in their account with Bank.

The scale of penalties went up despite the introduction of Jan Dhan Yojna Scheme under which 30.8 crores basic accounts were opened.

Under the Jan Dhan Yojna Scheme, depositors need not pay any fine for not maintaining the minimum balance requirement criteria.

The State Bank of India (SBI) raised the highest amount of Rs 2,433 crores which is nearly a half of the total amount.

Other banks, HDFC Bank, Axis Bank and ICICI Bank raised almost 30 percent of the total fined amount.

Also Read: State-Owned 'Indian Bank' Become One Of The Most Profitable Banks Of India In FY2018

As a percentage of penalties to saving accounts, HDFC Bank, Axis Bank and Oriental Bank of Commerce have a higher average than in comparison to SBI.

As per reports in media, the data was released by Junior Finance Minister Shiv Pratap Shukla.

According to professor Ashish K Das in the Department of Mathematics at IIT Mumbai quoted by Tol, depositors end up paying large penalties even when they miss the minimum balance requirement by a few rupees.

Almost half of the Banks have reduced their fines but the public sector banks are trying to increase fee collection to make up for losses from bad debts.