Summary of this article
Public sector banks' average debit card charges rose 88.8 per cent.
Low-balance charges increased 21 per cent across banks since 2022-23.
Private banks drove higher low-balance charges, while PSB charges fell.
The amount customers pay to public sector banks (PSBs) for holding a debit card has almost doubled in five years, while charges linked to low account balances have moved in different directions for both public and private lenders. Data presented by the Ministry of Finance in Rajya Sabha, along with data from the Reserve Bank of India (RBI) data show that the average debit card maintenance charge collected by PSB increased by 88.80 per cent between 2021-22 and 2025-26. The average low-balance charge collected by PSBs and private banks rose by 21 per cent between 2022-23 and 2025-26, with private banks accounting for the increase.
Higher Charges For Debit Cards
The 12 PSBs collected Rs 3,905.5 crore in annual debit card maintenance charges in 2021-22, according to data presented by the Ministry of Finance. The amount rose to Rs 7,563.8 crore in 2025-26, marking a 93.7 per cent increase over the four-year period.
The rise in total collections, however, could also be linked to an increase in the number of debit cards issued during the period, according to a an exclusive analysis by The Hindu. A comparison of the maintenance charges collected by PSBs with RBI data on the number of debit cards issued by them shows that the average maintenance charge collected per debit card rose from about Rs 61 in 2021-22 to Rs 115.10 in 2025-26, an increase of 88.80 per cent.
Low-Balance Charges Rise
In a reply to a question in Parliament, the finance ministry also provided data on charges imposed by PSBs and private banks for non-maintenance of minimum average balance. Together, the two categories of banks collected Rs 7,086.60 crore under this charge in 2025-26, up 27 per cent than the amount collected in 2022-23.
The rise in total collections could partly be linked to an increase in the number of bank accounts. These charges are not collected on Basic Savings Bank Deposit Accounts, including those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
A rough comparison of the low-balance charges collected by PSBs and private banks with the number of non-PMJDY accounts has revealed that the average charge per account rose from Rs 31 in 2022-23 to nearly Rs 38 in 2025-26, an increase of around 21 per cent, according to the analysis by The Hindu.
The increase was driven by private banks. Their average low-balance charge per account rose by nearly 45 per cent in 2025-26 compared with 2022-23. At PSBs, the corresponding charge fell by nearly 14 per cent during the same period.
Most PSBs Have Dropped Penal Charges
The Finance Ministry's reply noted that 10 of the 12 PSBs have discontinued penal charges for non-maintenance of minimum average balance in savings accounts. The other two have rationalised such charges in accordance with their board-approved policies and commercial considerations.
The reply also noted that RBI has advised banks to notify customers through SMS, email, letters or other appropriate means when they fail to maintain the required minimum balance. Customers are generally given time to restore the required minimum balance before penal charges are applied, according to the government. Basic Savings Bank Deposit Accounts, including those opened under the PMJDY, are not subject to such low-balance charges.
