Aam Aadmi Party (AAP) Rajya Sabha MP Raghav Chadha addressed the issue of penalties for maintaining minimum account balances in the Parliament. Chadha highlighted that banks have collected nearly Rs 19,000 crore in penalties over the past three years from customers who failed to meet the required minimum balance criteria. He emphasized that these penalties mainly impact individuals with small bank accounts, including farmers, pensioners, and daily wage earners.
Chadha pointed out that public sector banks accumulated about Rs 8,000 crore, while private sector banks gathered close to Rs 11,000 crore through these penalties. He stressed that such charges disproportionately affect the financially vulnerable in society and do not target affluent or large borrowers.
The AAP MP expressed concern that these penalties hinder financial inclusion efforts and discourage people from utilizing formal banking services. He stated that individuals, especially those with limited means, face penalties for minor balance discrepancies, which defeats the purpose of maintaining financial security through bank accounts.
Chadha further mentioned that continuous bank charges could lead to negative balances, resulting in customers paying more in penalties than their original deposits. He highlighted that instead of providing financial security, bank accounts are becoming a source of financial stress for many individuals.
The AAP leader proposed in Parliament to abolish minimum balance penalties to alleviate the financial burden on people and promote equitable access to banking services.
