No need to keep minimum balance in Jan Dhan, basic savings accounts: FM

Since MP is talking about banks collecting money for basic minimum balance which is not there in the account, that does not apply to PM Jan Dhan accounts, basic accounts of poor people, FM said

Finance Minister Nirmala Sitharaman on Tuesday said there is no need to maintain minimum balance in Jan Dhan as well as basic savings accounts, and banks impose penalties only in cases where customers fail to maintain a requisite amount in their accounts.

The minister was replying to a question in Rajya Sabha during Question Hour regarding public sector banks collecting about Rs 8,500 crore in penalty from customers for non-maintenance of minimum balance in accounts in five years.

"Since the member is talking about banks collecting money for basic minimum balance which is not there in the account, that does not apply to PM Jan Dhan accounts and basic accounts of the poor people. It is only for others whose minimum balance is expected to be at a certain level," Sitharaman said.

It emerged in a written reply to a question in the Lok Sabha that public sector banks collected around Rs 8,500 crore under this head in five years starting FY 2019-20.

Minister of State for Finance Pankaj Chaudhary also informed the Lok Sabha last month that state-owned banks have charged depositors Rs 2,331 crore penalty for not maintaining the average monthly minimum balance in FY24.