Aam Aadmi Party MP Raghav Chadha on Tuesday highlighted the burden of minimum account balance (MAB) penalties on low-income bank customers, revealing that banks collected Rs 19,000 crore in the last three financial years from account holders who failed to maintain the required balance.

Speaking during the budget session of Parliament, Chadha called for the removal of such penalties, arguing that they disproportionately affect poor people and discourage savings. “This is a recovery from the smallest and poorest bank account holder. Their ‘crime’ was that they didn’t maintain the minimum account balance,” he said.

Using government data, Chadha illustrated the impact with an example of a low-income depositor: saving Rs 6,000 over months, using part of it for a family emergency, and then losing hundreds of rupees to bank fees. He noted, “With just Rs 100 a month, the bank has taken Rs 600 over six months. For a poor person, this is significant.”

Also Read: Meta’s Adversarial Threat Report 2026 Highlights AI-Powered Cybercrime Surge in India

Chadha criticised the banking system for targeting vulnerable populations, especially in rural areas where MAB requirements range from Rs 1,000 to 3,000, with penalties of Rs 50 to 600 per month, plus 18% GST on fees. “Today, poor people are getting poorer. Bank charges and MAB penalties should be removed, just like farmers’ loans are waived,” he said.

He urged the government to take steps to promote financial inclusion, emphasising that eliminating these fees would encourage savings among low-income citizens and make the banking system more accessible.

Also Read: India Seizes 15,000 LPG Cylinders In 12,000 Raids; 94% Bookings Done Online