SRINAGAR: Public sector banks collected Rs 11,480.90 crore from customers over the last three financial years through penalties for non-maintenance of minimum balance and charges for SMS alert services, a sum that sharply outweighs the late fees realised by the government from delayed filing of GST returns, according to figures furnished by the Ministry of Finance in the Lok Sabha.
Data placed before the House show that banks earned Rs 3,601.01 crore in 2022-23, Rs 3,886.38 crore in 2023-24 and Rs 3,993.51 crore in 2024-25 under these two heads combined, indicating a steady rise in customer service-related charges year after year.
Of the total, Rs 8,092.83 crore came from penalties imposed for not maintaining the stipulated minimum balance in savings accounts. Collections under this head stood at Rs 2,407.82 crore in 2022-23, increased to Rs 2,909.10 crore in 2023-24, and remained high at Rs 2,775.91 crore in 2024-25.
Charges for SMS alert facilities accounted for another Rs 3,388.07 crore during the same period, with banks collecting Rs 1,193.19 crore in 2022-23, Rs 977.28 crore in 2023-24 and Rs 1,217.60 crore in 2024-25.
Bank-wise figures show that several lenders reported sizeable recoveries from these charges. Punjab National Bank, Bank of Baroda, Canara Bank, Indian Bank and State Bank of India were among those with substantial minimum balance collections, while Union Bank of India recorded the highest receipts from SMS alert services. SBI informed that it has waived SMS alert charges with effect from January 1, 2020.
In comparison, the government told Parliament that no penalty is imposed for late filing of GST returns and only prescribed late fees are charged. These collections were markedly lower than bank charges. The late fees amounted to Rs 1,960.38 crore in 2021-22, Rs 1,968.10 crore in 2022-23, Rs 1,987.72 crore in 2023-24 and Rs 1,748.74 crore in 2024-25.
The Ministry also clarified that no fine was levied for the delay in linking Aadhaar with PAN. Instead, a fee structure yielded Rs 570.49 crore in 2022-23, Rs 1,237.94 crore in 2023-24 and Rs 527.32 crore in 2024-25.
Explaining the framework, the government said banks offer zero-balance savings accounts, including Basic Savings Bank Deposit Accounts and accounts opened under the Pradhan Mantri Jan Dhan Yojana, which are exempt from minimum balance requirements. Charges on regular accounts, it said, are governed by board-approved policies and Reserve Bank of India guidelines mandating transparency and reasonableness.
The figures indicate that while GST-related late fees, linked to the country’s principal indirect tax regime, remain under Rs 2,000 crore annually, service charges levied by public sector banks have emerged as a far larger source of revenue, crossing Rs 11,000 crore over three years.
