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Public-sector banks’ debit-card maintenance collections rise 94% in five fiscal years
Our read
Debit-card fee income remains resilient for public-sector banks, but rising consumer scrutiny and UPI substitution make exemptions, transparency, and card rationalisation more likely than another broad-based fee increase.
For operators
Public-sector banks’ debit-card maintenance-fee collections nearly doubled over five fiscal years, highlighting a growing recurring-fee revenue pool but also elevating affordability and customer-retention scrutiny.
Watch
RBI or Finance Ministry guidance on debit-card annual maintenance charges, zero-balance accounts, Jan Dhan accounts, and disclosure requirements.
The report,
Debit-card maintenance charges collected by India’s public-sector banks nearly doubled in five years, while minimum-balance fee collections rose 27%. Private banks drove higher low-balance charges, though 10 of 12 public-sector banks have removed savings-account penalties.
Reported figures
From the report. Source details below
| Average maintenance fee per debit card rose from about Rs 61 in FY2021-22 to Rs 115.1 in FY2025-26, up | 88.8% |
|---|---|
| Private-bank average low-balance fee per account rose about 45%; public-sector-bank fees fell | about 14% |
Also in the report
- Public-sector banks collected Rs 3,905.5 crore in debit-card annual maintenance charges in FY2021-22
- Public-sector banks collected Rs 7,563.8 crore in debit-card annual maintenance charges in FY2025-26
- Banks collected Rs 7,086.6 crore for minimum-balance shortfalls in FY2025-26, up 27% from FY2022-23
Why it matters to operators
The expanding debit-card fee pool makes payments platforms, card-servicing capabilities and low-cost digital engagement assets strategically more valuable to banks seeking recurring revenue growth.
What to watch next
- Growth or decline in active debit-card stock at public-sector banks relative to total cards issued.
- Customer complaints, ombudsman cases, and social-media scrutiny regarding automatic deductions or charges on dormant accounts.
- UPI transaction growth versus debit-card point-of-sale and ATM transaction volumes.
- Bank annual reports showing fee-income growth, card cancellation rates, and changes in average maintenance fee per active card.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Public-sector banks push customers toward higher-fee premium debit-card tiers bundled with insurance, merchant offers, and digital-service benefits.
- Banks tighten exemptions, improve recurring-charge disclosures, and promote digital self-service for card block, replacement, and account conversion.
- Retailers and payment platforms increase UPI-linked promotions as consumers become more sensitive to bank card maintenance costs.
- Consumer advocates and opposition lawmakers seek account-level data on fees, exemptions, inactive cards, and charges levied on financially vulnerable customers.
The counter-case
The case against this reading — not reported by the source.
The rise in collections does not by itself prove that public-sector banks sharply increased debit-card pricing or are exploiting customers. It may reflect a larger active-card base, improved fee recovery, migration to higher-tier cards, fewer waivers, or a change in how chargeable cards are counted. Even the implied per-card average can overstate household impact if calculated against issued rather than active or fee-paying cards.
The source
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