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31 July 2026

Rising costs of debit cards for customers

The topic relates to financial inclusion and banking service delivery, providing useful context for discussions on digital governance and consumer protection in the financial sector.

1 min read 1 questions 1 prelims

Notes

  • Public Sector Banks (PSBs) increased average annual maintenance charges for debit cards by nearly 90% over the last five years (from ₹61 per card in 2021-22 to ₹115.1 in 2025-26).
  • Total debit card maintenance charges collected by 12 PSBs rose from ₹3,905.5 crore in 2021-22 to ₹7,563.8 crore in 2025-26.
  • Average charges for non-maintenance of minimum balance across all banks increased by 21% over the last four years.
  • Per-account low-balance charges rose from ₹31 in 2022-23 to ₹38 in 2025-26, driven primarily by private sector banks.
  • PSBs have reduced or discontinued penal charges for non-maintenance of minimum balance; 10 out of 12 PSBs have discontinued these charges, while two have rationalised them.
  • Basic Savings Bank Deposit Accounts (BSBDA), including PMJDY accounts, are exempt from low-balance charges.
  • RBI guidelines mandate that banks must notify customers via SMS, email, or letter before applying penal charges for low balance, providing time to restore the required amount.

Questions

  1. Analyze the impact of rising banking service charges on financial inclusion in India. Discuss the role of regulatory oversight in balancing commercial banking viability with consumer protection. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00

Prelims

  1. Which of the following types of bank accounts are explicitly exempted from charges related to the non-maintenance of minimum average balance?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-31/rising-costs-of-debit-cards-for-customers