Hidden Fees Draining Public Savings
New Delhi: Aam Aadmi Party (AAP) leader and Rajya Sabha MP Raghav Chadha strongly raised the issue of hidden bank charges in Parliament, accusing banks of quietly burdening common citizens with multiple fees. He stated that banks deduct small amounts under various heads, but collectively these charges significantly impact middle-class and lower-income families.
Chadha highlighted that customers often remain unaware of these deductions until they carefully examine their bank statements. He argued that banks must maintain complete transparency and clearly inform customers about every applicable fee.
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Minimum Balance Penalty Under Scrutiny
Chadha identified the minimum balance penalty as one of the most problematic charges. He pointed out that banks impose penalties ranging from ₹100 to ₹600 per month if customers fail to maintain the required minimum balance in their savings accounts. He emphasized that banks collectively earned thousands of crores through such penalties in recent financial years.
According to him, penalizing customers—especially students, senior citizens, and low-income earners—for not maintaining a minimum balance contradicts the goal of financial inclusion.
Multiple Charges Adding to the Burden
Chadha also listed several additional charges that banks routinely collect:
- Fees for extra ATM transactions beyond the free limit
- Charges for account inactivity
- Payment for physical bank statements
- Quarterly SMS alert charges
- Transaction fees on NEFT and RTGS transfers
- Loan processing fees ranging from 1% to 3% of the loan amount
- Charges for updating nominee details, signature changes, and issuing demand drafts
He argued that while each charge may appear small individually, together they erode customers’ hard-earned savings.
Call for Regulatory Intervention
Raghav Chadha urged the government and the Reserve Bank of India (RBI) to review these practices and introduce stricter regulations. He demanded greater transparency in banking services and suggested that banks should clearly disclose all charges at the time of account opening.
He further called on the Finance Ministry to ensure that the banking system operates in favor of citizens rather than prioritizing profit over public welfare.
Conclusion
By raising this issue in Parliament, Raghav Chadha brought national attention to the growing concern over hidden bank charges. He asserted that protecting consumers from unfair deductions remains essential to strengthening trust in the banking system. Chadha concluded that authorities must act swiftly to regulate excessive fees and safeguard the financial interests of ordinary Indians.
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