BANKING & FINANCE
Banking Affairs
Public and Private Sector Banks Report Significant Earnings from Non-Core Fees and Penalties
Public Sector Banks (PSBs) generated over ₹28,600 crore in the last five years through the sale of third-party products like insurance and mutual funds, with SBI leading at ₹17,043 crore.
In the private sector, banks collected approximately ₹11,000 crore as penalties for non-maintenance of minimum balance in savings accounts between FY23 and FY25.
HDFC Bank emerged as the highest earner from minimum balance penalties, collecting over ₹3,800 crore, followed by Axis Bank and ICICI Bank.
Notably, State Bank of India (SBI) has waived all penalties for non-maintenance of minimum balance since March 2020.
Perspective: These figures illustrate the growing reliance of the banking sector on fee-based income and the varying approaches toward penalty-based revenue models.
In the private sector, banks collected approximately ₹11,000 crore as penalties for non-maintenance of minimum balance in savings accounts between FY23 and FY25.
HDFC Bank emerged as the highest earner from minimum balance penalties, collecting over ₹3,800 crore, followed by Axis Bank and ICICI Bank.
Notably, State Bank of India (SBI) has waived all penalties for non-maintenance of minimum balance since March 2020.
Perspective: These figures illustrate the growing reliance of the banking sector on fee-based income and the varying approaches toward penalty-based revenue models.
Key Facts / Static GK
BSBDA: Basic Savings Bank Deposit Accounts, which are exempted from minimum balance requirements.
Practice Quiz — 16 March 2026
Q1. Who administered the oath of office to Syed Ata Hasnain as the Governor of Bihar?
Answer: (C) Chief Justice of Patna High Court — As per the Constitution of India, the oath of office to a Governor is administered by the Chief Justice of the High Court of that state. In this case, Chief Justice Sangam Kumar Sahoo of the Patna High Court administered the oath.
Q2. Which Union Ministry was primarily responsible for organizing the 'Purple Fest' at Rashtrapati Bhavan?
Answer: (C) Ministry of Social Justice and Empowerment — The 'Purple Fest' is an initiative focused on Divyangjan (Persons with Disabilities), which falls under the jurisdiction of the Ministry of Social Justice and Empowerment.
Q3. What is the new revised fee for the NHAI FASTag Annual Pass for the financial year 2026-27?
Answer: (C) ₹3,075 — The NHAI has revised the FASTag Annual Pass fee from ₹3,000 to ₹3,075 for the financial year 2026-27, effective April 1, 2026.
Q4. Tuticorin Airport, which was recently renamed Thoothukudi Airport, is located in which Indian state?
Answer: (D) Tamil Nadu — The airport is located in the state of Tamil Nadu. The renaming was approved to reflect the local name of the city, Thoothukudi.
Q5. The festival of 'Chapchar Kut' is associated with which Indian state?
Answer: (C) Mizoram — Chapchar Kut is the most important traditional spring festival of the Mizo people in Mizoram, celebrated after the completion of jhum cultivation tasks.
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