Finance Minister Confirms No Penalties for Basic Savings Accounts Under Jan Dhan Scheme
Basic savings, Jan Dhan accounts not subject to penalty for not having minimum balance: FM Nirmala Sitharaman
The Economic Times
Image: The Economic Times
Finance Minister Nirmala Sitharaman announced that approximately 72 crore Basic Savings Bank Deposit Accounts (BSBDAs), including those under the Pradhan Mantri Jan Dhan Yojana (PMJDY), will not incur penalties for not maintaining a minimum balance. This initiative aims to promote financial inclusion and provide basic banking services to vulnerable populations.
- 0172 crore Basic Savings Bank Deposit Accounts are exempt from minimum balance penalties.
- 02The initiative is part of the government's efforts to enhance financial inclusion.
- 03Public Sector Banks collected ₹8,092.83 crore in penalties from other accounts for non-maintenance of minimum balance.
- 04SBI has waived off such penalties since March 2020.
- 05Nine Public Sector Banks have also waived off minimum balance charges.
Advertisement
In-Article Ad
Finance Minister Nirmala Sitharaman stated that around 72 crore Basic Savings Bank Deposit Accounts (BSBDAs), including those under the Pradhan Mantri Jan Dhan Yojana (PMJDY), will not face penalties for non-maintenance of a minimum balance. This policy is designed to ensure universal banking access, especially for unbanked and vulnerable populations. These accounts offer basic banking services such as deposits, withdrawals, and ATM access without any charges. Sitharaman noted that from FY 2022-23 to FY 2024-25, Public Sector Banks (PSBs) collected ₹8,092.83 crore from current and savings account holders due to non-maintenance of Minimum Monthly Average Balance (MAB). This amount represents only 0.23% of the total income of PSBs during this period, indicating that such penalties are more aligned with service costs than revenue generation. To enhance customer service, PSBs have reviewed their charge structures, with State Bank of India (SBI) waiving penalties since March 2020. Additionally, nine PSBs have eliminated such charges, reflecting a trend towards more inclusive banking practices.
Advertisement
In-Article Ad
This policy will alleviate financial pressure on account holders who may struggle to maintain minimum balances, promoting financial stability for low-income individuals.
Advertisement
In-Article Ad
Read the original article
Visit the source for the complete story.