Raghav Chadha, Rajya Sabha MP from AAP, took the government to task Tuesday over bank minimum balance penalties that have extracted Rs 19,000 crore from customers in three years. Private banks collected Rs 11,000 crore, outpacing public sector banks’ Rs 8,000 crore haul.
Highlighting the human cost, Chadha listed victims: a farmer short on funds, a pensioner buying medicines, a laborer with a few rupees less—all fined relentlessly. These charges don’t touch wealthy clients but devour the savings of the economically weak.
Repeated penalties push accounts negative, where banks continue charging, often exceeding deposited amounts. Chadha decried this as antithetical to financial inclusion, which aims to bring the poor into banking, not drive them away with fear.
‘Banks should offer security, not stress,’ he declared. His proposal to eliminate these fines seeks to end what he calls ‘poverty penalties,’ fostering a system where small savers feel protected.
As debates on economic equity intensify, Chadha’s intervention spotlights a flaw in India’s banking framework. Scrapping these fees could boost participation among marginalized groups, aligning policy with true inclusivity goals and easing daily financial burdens.