Financial Inclusion Boost: PSBs Scrap Minimum Balance Charges

In an effort to enhance financial inclusion, most Public Sector Banks (PSBs) have abolished minimum balance charges on general savings accounts. This strategy is part of broader efforts to attract deposits and leverage technology for seamless customer onboarding. Meanwhile, digital transactions in India have seen substantial growth.

In a move to bolster financial inclusion, numerous Public Sector Banks (PSBs) in India have eliminated minimum balance charges on general savings accounts. This step aligns with the Reserve Bank of India's (RBI) directives requiring no minimum balance for Basic Savings Bank Deposit Accounts (BSBDA).

Minister of State for Finance, Pankaj Chaudhary, noted that banks are now offering basic banking services, such as deposits and withdrawals, without additional fees for BSBDA accounts. PSBs have also launched strategic initiatives, including technology-driven customer onboarding, to attract and retain deposits.

Digital payments have surged in India, with a dramatic rise in transaction volumes and values, reflecting the growth trajectory in the financial sector. The Unified Payments Interface (UPI) transactions have particularly soared, marking significant milestones in the country's digital payment landscape.

(With inputs from agencies.)