Banks minting money on 'minimum balance' clause

New Delhi: State-owned Punjab National Bank (PNB) collected nearly Rs170 crore by levying charges on customers for not maintaining the required minimum balance in their accounts during 2020-21, according to RTI information.

The lender's revenue earned from such charges stood at Rs286.24 crore in 2019-20. Banks levy such charges on a quarterly basis during a fiscal year. The quarterly average balance (QAB) in the April-June period of 2020-21 stood at Rs 35.46 crore (both on savings and current account); while no such charges were levied in the second quarter of FY21.

In the third and fourth quarters, the QAB non-maintenance charges stood at Rs 48.11 crore and Rs 86.11 crore, respectively, PNB said in a reply to Right to Information (RTI) sought by Madhya Pradesh-based social activist Chandra Shekhar Gaur.