₹19,000 Crore Bank Fines Row: Raghav Chadha Questions Minimum Balance Charges

In Parliament, Aam Aadmi Party (AAP) MP Raghav Chadha spoke strongly against the high fines that banks have been imposing in the last three years for not maintaining a minimum balance in their accounts. He said that these fines were not for the rich or for those who borrow heavily, but for the poorest account holders who simply did not have enough money.

He also pointed out that these fines are for those who are most economically vulnerable. He mentioned farmers, pensioners, and daily wage workers who were charged high fines even if they did not have the minimum balance in their accounts. He said that even when pensioners withdraw money for their medicines, they are penalized, and even if daily wage laborers are short by a few hundred rupees in their accounts, they are charged.

Raghav Chadha also questioned the very purpose of financial inclusion. He believes that the goal of financial inclusion should be to protect small savings, not to punish those with small bank balances. He said that poor people keep their money in banks for safety, and they should not be silently punished for their poverty.

MP Chadha has proposed in Parliament to abolish the minimum balance penalty. He believes this will prevent the banking system from taking money from those who are already struggling with financial hardship. This step will provide relief to the poor and realize financial inclusion in its true spirit.

The amount of ₹19,000 crore recovered by banks for not maintaining a minimum balance in the last three years raises serious questions about the current approach to financial inclusion. This amount is collected from people who should be encouraged to become part of the financial system, not penalized. Public sector banks collected approximately ₹8,000 crore in fines, while private sector banks collected approximately ₹11,000 crore during this period.

According to the Rajya Sabha MP, such practices defeat the very purpose of financial inclusion and discourage people from using the formal banking system. Chadha further stated that poor people keep money in banks for safety, not to silently pay fines due to their poverty.

He said that due to recurring bank charges, account balances often go into negative, forcing customers to pay more than their original deposits as penalties. He said that banks often continuously add fees, leading to negative balances. Sometimes, they even charge more than the actual amount deposited in the name of charges.

Chadha said that while bank accounts are meant to provide financial security to citizens, in many cases they are becoming a source of financial stress. He added, "The goal of financial inclusion should be to protect small savings, not punish people for low balances. Bank accounts are meant to provide financial security, but these days they are causing financial stress for many people instead of providing financial security." The AAP leader has proposed in Parliament that penalties for not maintaining a minimum balance should be abolished, so that the banking system stops charging people for their poverty.