New Delhi, July 29 -- Banks collected more than Rs.26,170 crore from customers as penalties for failing to maintain the minimum average balance (MAB) in their accounts over the four financial years from FY23 to FY26, according to a written reply by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha. The data, compiled from public sector banks and the Reserve Bank of India (RBI), shows private lenders accounted for the larger share of these collections.

In FY26 alone, banks collected Rs.7,086.63 crore through minimum balance charges. Private sector banks accounted for Rs.4,948.71 crore, more than twice the Rs.2,137.92 crore collected by public sector banks (PSBs).

The government also said public sector banks have significa...