New Delhi, March,18,2026: Raghav Chadha bank charges issue was raised in Parliament as Aam Aadmi Party MP Raghav Chadha criticized banks for collecting heavy penalties from customers who fail to maintain minimum balance.
Speaking during a parliamentary discussion, Chadha said banks have collected nearly Rs 19,000 crore in penalties over the last three years for not maintaining minimum balance in savings accounts.
Raghav Chadha said the practice is unfair to ordinary citizens and described it as a silent financial burden on the public. He stated that the penalties are largely paid by common people rather than wealthy account holders.
According to Chadha, these charges are affecting daily wage workers, farmers and pensioners the most. He said people often withdraw money from their bank accounts to meet urgent needs, but banks still impose penalties if the balance falls below the required limit.
He questioned the fairness of such penalties, saying the system is placing unnecessary pressure on vulnerable sections of society.
During his remarks, Chadha also highlighted the amount collected by different types of banks. He said private sector banks collected around Rs 11,000 crore in minimum balance penalties during the past three years. Public sector banks collected about Rs 8,000 crore during the same period.
Chadha described these penalties as a form of tax imposed on the poor. He said that although Jan Dhan accounts are exempt from minimum balance requirements, many regular savings account holders continue to face significant financial penalties.
He urged the central government and the Reserve Bank of India to review the current policy. Chadha demanded that minimum balance penalties imposed on savings account holders be abolished to protect common citizens from additional financial pressure.
The issue of bank minimum balance charges has been raised several times in public discussions. Critics say such penalties can create financial strain for customers with limited income, especially when funds are withdrawn for essential expenses.
Chadha called on authorities to take immediate action and reconsider the existing rules governing minimum balance requirements in savings accounts.
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