₹26,000 crore in minimum balance penalties, and how to avoid them

"#Banks earned over ₹26,000 crore from minimum balance penalties in 4 years."

Common narrative to attract 'Eyeballs'?
Banks are looting the #CommonMan!

My Narrative?
Maybe we're making it too easy for them.

A large portion of these penalties are completely avoidable.

Think about how many people:
- Changed jobs and forgot an old salary account.
- Opened a new account because the relationship manager insisted.
- Have a hometown account that hasn't been used in years.
- Don't even remember how many bank accounts they own.

The funny part?
Many people can tell you exactly how much their #MutualFund portfolio is worth.
But have no idea how many bank accounts they have!

And banks know this.
That's why financial negligence becomes a revenue stream.

And for the people who really can't maintain a minimum balance, the #RBI has
Basic Savings Bank Deposit Accounts (#BSBDA), #JanDhan Accounts!

Yet millions of people continue to maintain accounts that require a minimum balance.
Blame it on a lack of financial knowledge or the banker who upgraded the person just to meet his targets!

Sometimes we pay the cost of ignoring our finances.
A forgotten account.
A missed SMS.
An unread email.
A dormant relationship.
And suddenly, a few hundred #Rupees disappear every month.

The bigger lesson?
We spend hours researching the next Star, but forget the basic financial housekeeping.
- Closing unused accounts.
- Reviewing charges.
- Understanding products before signing forms.
The boring stuff!

#MoneyMinusNoise
Most financial mistakes don't happen because people make bad investments. They happen because people ignore the small things for years.

Quick question:
How many active bank accounts do you currently have?
And more importantly...
When was the last time you reviewed all of them?

Fun Facts -
- The number includes penalties levied on Current Accounts too.
- 10/12 PSBs have discontinued penal charges for non-maintenance of minimum average balance in savings accounts, including SBI.
- There are over 73 crore BSBDAs, including PMJDY accounts opened, that are currently exempt from any penalty for non-maintenance of minimum balance.