Raghav Chadha seeks end to minimum balance penalties in banking system

Chadha, who participated in the debate on the appropriation bill, termed it “legalized pickpocketing”.

“Rs 19,000 crore. That is what Banks collected in last three years just for not maintaining a ‘Minimum Account Balance.’ This is not from the rich. Not from big borrowers. From the poorest accounts in the system. Their crime? They didn’t have enough money. A farmer misses the minimum balance – penalty.

A pensioner withdraws money for medicine – Penalty. A daily wage worker falls short by a few hundred rupees – Penalty,” he said.”The poor keep money in banks for safety. Not to be quietly fined for being poor. Financial inclusion should protect small savings, not punish small balances,” he added.

The Aam Aadmi Party (AAP) leader also called for a more “humane” financial system.
“In Parliament, I delivered a speech titled ‘I Do Not Oppose, I Rise to Propose.’ In Parliament today, I spoke about three everyday anxieties of ordinary Indians and proposed practical reforms.

– Allow the optional Joint Filing of Income Tax Returns so married couples with uneven incomes are not penalised.- Restore Full Income Tax Exemption on Disability Pensions for all wounded soldiers, not only those invalided out of service.- End penalty charges on bank accounts for not maintaining a minimum account balance. I rose to propose solutions that make the system fairer, more humane and more just,” he said in a post on X.