TNCC protests proposed charges on Jan Dhan withdrawals

What Happened

TNCC president B. Manickam Tagore stated on August 22, 2026 that the Union government is considering levying charges on withdrawals from basic savings accounts. He asserted that banks plan a penalty of ₹15, plus 18% GST, for withdrawals exceeding four per month from such accounts, including ATM withdrawals. He said the charge announced by the State Bank of India would amount to ₹17.70 per transaction and would take effect from October 1. Tagore claimed that the RBI had approved the move and warned that other banks might follow SBI’s example.

Why It Matters

The opposition raises concerns that new charges on basic savings accounts could deter the poor from using formal banking services and push those with limited internet or electricity access back toward cash. Tagore highlighted a broader digital payments push, arguing it could disadvantage certain segments of the population if withdrawal costs rise.

Background

Basic banking accounts for the poor were introduced in 2005 during the Manmohan Singh government under the No Frills Account initiative, which was later renamed to Pradhan Mantri Jan Dhan Yojana (PMJDY) under a BJP-led government. Tagore noted that around 56 crore such accounts exist, with approximately 53 crore opened through public sector banks. He contrasted the treatment of these accounts with what he described as banks’ willingness to waive loans for large business groups over the past decade while seeking charges on withdrawals by poor account holders.

Key Facts

• Tagore claimed the withdrawal fee proposed for basic savings accounts is ₹15 plus 18% GST for withdrawals more than four times in a month, including ATM withdrawals.
• State Bank of India reportedly announced that the charge would be ₹17.70 per transaction and would begin on October 1.
• Tagore alleged the RBI approved the move and that other banks could follow SBI’s decision.
• Basic banking accounts were introduced in 2005 as No Frills Accounts, later renamed PMJDY.
• Estimated nearly 56 crore such accounts exist, with about 53 crore opened through public sector banks.
• The congress MP argued the policy could push internet- and electricity-less populations toward cash usage amid a digital payments push following 2016 demonetisation.
• Tagore claimed banks have waived loans worth ₹16 lakh crore for large business groups over the past decade.
• The statements were published on August 22, 2026, with the timing of the proposed charges set to take effect from October 1.

What Happens Next

The material evidence notes the dates of announcement and the planned October 1 effective date, but there is no information in the provided material about official responses beyond Tagore’s statements. Any future actions, clarifications from the RBI or banks, or government responses would depend on developments after August 22, 2026.