 "PSBs' Rs 8,500 crore penalties a burden on common man: Rahul Gandhi")
Leader of Opposition Rahul Gandhi condemned the government for penalty collection in public sector banks (PSBs) from accounts that do not maintain an average balance. Gandhi’s criticism came in response to the government disclosing data that showed that 12 PSBs collected approximately Rs 8,500 crore in penalties from customers for not maintaining average monthly balances between 2019-20 and 2023-24.
This information was provided in response to questions posed by MPs V Selvaraj, K Subbarayan, and Mala Roy in the Lok Sabha last week.
Minister of State for Finance Pankaj Chaudhary further informed the Lok Sabha that public sector banks charged Rs 2,331 crore in penalties for not maintaining average monthly minimum balances in FY24.
How much do PSBs charge for low bank balance?
Penalties can vary depending on the bank, but general charges for non-maintenance of average monthly balance can range from Rs 125 to Rs 250 per quarter depending on whether customers reside in rural or urban areas. For example, Punjab National Bank requires saving account customers to maintain a minimum quarterly average balance (QAB) of Rs 2,000 in urban and metro areas, Rs 1,000 in semi-urban areas, and Rs 500 in rural areas, with penalties for non-maintenance ranging from Rs 100 to Rs 250.
Bank of Baroda imposes quarterly penalties of Rs 250 for urban and metro branches, and Rs 125 for rural and semi-urban branches, including senior citizens or pensioners. Penalty charges at Bank of Baroda vary based on the QAB range, with charges escalating from 25 per cent to 100 per cent as the balance decreases.
Meanwhile, the State Bank of India waived penalties for non-maintenance of the average monthly balance in savings bank accounts from 2020 onwards.
More From This Section
Emptying pockets of common man: Rahul Gandhi
In a post on X, Gandhi said, “In the Amritkaal of Narendra Modi, the 'empty pockets' of common Indians are also being extracted. The government that waived off Rs 16 trillion of its industrialists has collected Rs 8,500 crore from poor Indians who are unable to maintain even the minimum balance.”
Gandhi called the collection PM Modi’s ‘chakravyuh’, comparing the government's penalty system to the complex, entrapping military formation from the Mahabharata epic, suggesting that it is designed to financially burden the common Indian.
“The ‘penalty system’ is the door of Modi’s Chakravyuh through which an attempt is being made to break the back of the common Indian,” Gandhi said.
Participating in the Lok Sabha debate on the Union Budget 2024-25, Gandhi stated that the INDIA bloc will work to dismantle this system and ensure legal guarantees for MSP and a caste census.
“In the 21st century, another ‘chakravyuh’ has been prepared. It is in the form of a lotus and the prime minister (Narendra Modi) wears the symbol on his chest. What was done with Abhinmanyu is being done with India, with its youth, women, farmers and small and medium businesses,” Gandhi said.
Anurag Thakur calls Rahul Gandhi ‘accidental Hindu’
BJP MP Anurag Thakur responded to Gandhi’s remarks, questioning his understanding of the Mahabharata and calling him an “accidental Hindu”. Thakur corrected Gandhi’s reference to the Mahabharata, stating that seven, not six, warriors were involved in Abhimanyu’s death, and criticised Gandhi for his lack of knowledge about both the Constitution and the Mahabharata.
Speaking in Parliament, Thakur took a jibe at Gandhi, saying, “These people have neither read the Constitution nor the Mahabharata, but, surprisingly, they have not even seen the Mahabharata; otherwise, they would have known that not six but seven Maharathi were involved in the killing of Abhimanyu.”