Seechewal raises issue of bank penalties on failing to keep minimum account balance
Minimum balance penalty issue raised in Rajya Sabha as government says most PSU banks have removed charges and suggests zero-balance BSBDA accounts.
Minimum balance penalty rules came under scrutiny in Parliament as a Rajya Sabha MP raised concerns over charges on rural account holders. (File Photo)
Rajya Sabha member Balbir Singh Seechewal during the Budget session has raised the issue of penalties imposed by the banks on farmers and labourers from rural backgrounds for not maintaining the monthly average balance in their savings accounts.
Citing information shared by the Ministry of Finance in the Lok Sabha, Seechewal said the banks have collected a total of Rs 19,000 crore as penalties from the accounts of these people over the past three years.
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He questioned the Union Finance Minister and asked whether the government is considering providing relief to the account holders who are being penalised for failing to maintain the required minimum balance.
The Rajya Sabha MP said it reflects the financial hardships when the farmers and labourers are unable to even maintain the minimum balance in their accounts. In such situations, instead of burdening them with penalties, the banks should support them.
The banks are waiving off loans worth lakhs of crores for big corporations, while they are heavily penalising the weaker sections for the absence of minimum balance in their accounts. He alleged that the banks indirectly recover the burden of the big loan waivers from the account holders through these penalties.
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In a written reply, Minister of State for Finance Pankaj Chaudhary said 10 out of 12 public sector banks have stopped imposing penalties for not maintaining the minimum (monthly average) balance in savings accounts. The other two banks have rationalised their policies and charges as approved by their respective boards, he said.
He informed that account holders who wish to avoid such penalties can convert their existing savings accounts into “Basic Savings Bank Deposit Accounts (BSBDA)”.
Chaudhary also said these accounts do not require maintaining any minimum balance and no penalties imposed. Basic banking services such as deposits, withdrawals and ATM facilities are provided free of cost.
Minimum balance penalty rules came under scrutiny in Parliament as a Rajya Sabha MP raised concerns over charges on rural account holders. (File Photo) 
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