New Delhi, July 28 -- Private sector banks collected more than twice as much from customers in penalties for failing to maintain minimum average balances than their state-owned peers in fiscal year 2026 (FY26), highlighting the widening divergence in fee practices even as most public sector lenders have scrapped such charges on savings accounts.

Private lenders collected Rs.4,948.71 crore through minimum average balance (MAB) penalties during the year, compared with Rs.2,137.92 crore collected by the country's 12 public sector banks (PSBs), according to provisional data tabled in the Rajya Sabha on Tuesday. The figures were disclosed by the government in response to a parliamentary question on penalties levied by banks on customers.

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