New Delhi/Chandigarh, March 26, 2026 (Yes Punjab News)
Rajya Sabha Member Sant Balbir Singh Seechewal raised the serious issue of penalties imposed on poor savings account holders for not maintaining the minimum balance (monthly average balance) during the budget session.
Referring to information shared by the Finance Ministry in the Lok Sabha, he stated that nearly ₹19,000 crore has been collected from the accounts of poor customers as penalties over the past three years.
Sant Seechewal questioned the government, asking whether it is considering providing relief to poor account holders from rural backgrounds, especially farmers and laborers, from such penalties.
In a written reply, Minister of State for Finance Pankaj Chaudhary informed that out of 12 public sector banks, 10 have stopped imposing penalties for non-maintenance of minimum balance, while the remaining two banks have rationalized their policies and fee structures. He also mentioned that customers who wish to avoid penalties can convert their existing savings accounts into “Basic Savings Bank Deposit Accounts (BSBDA).”
According to the minister, these accounts do not require maintaining any minimum balance and do not attract any penalties. Additionally, basic banking services such as deposits, withdrawals, and ATM facilities are provided free of cost.
MP Sant Seechewal stated that the inability of poor and needy account holders to maintain minimum balance clearly reflects their financial hardship. Imposing penalties on such individuals instead of providing relief is unjust.
Sant Seechewal further said that while large corporate loans worth lakhs of crores are written off, poor people are penalized heavily for not maintaining even small balances in their accounts. He added that this situation reflects social inequality, where the hard-earned money of the poor is taken away by banks in the form of penalties.
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