RBI "appeases" tech savvy upper class, refuses to remove big penalties affecting poor

Counterview Desk
Even as welcoming Reserve Bank of India's decision to remove RGTS and NEFT transactions the Financial Accountability Network India (FAN India) – a group of civil societies, unions, NGOs and peoples movements – has said that it merely seeks to boost digitalisation and is yet another indicator that the RBI is interested in promoting banking among only a particular class (tech-savvy, urban, middle and upper-middle class).
In a statement, FAN India has said, RBI has ignored the interests of the weaker sections of society, which are affected most due to higher charges on basic services, pointing out that a pilot study conducted by RBI in Mumbai has revealed that over than 25% of the customers are "unhappy with the charges such as penalty on non-maintenance of minimum balance, cash deposit charges at home and non-home branches, cheque return charges (deposited by the customers) and for signature verification."

Text of the statement:

The Financial Accountability Network India (FAN India) welcomes the Reserve Bank of India’s (RBI's) decision to remove charges for the Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) transactions and to form a committee under the chairmanship of Chief Executive Officer, Indian Banks’ Association, to ‘examine the entire gamut of ATM charges and fees.’
As a group of civil societies, unions, NGOs and peoples movements, it has been our longstanding demand from the RBI and the government that it look into the matter of bank charges and take immediate actions to remove all the charges.
While the RBI’s decision on removal of the charges on NEFT and RTGS and setting up a Committee is appreciated, it is important to note here that the RBI has so far stated that all charges levied by the banks are at the discretion of respective banks and that the RBI will not step in. It is a welcome step that the central bank has now recognised the problem of charges levied by banks for providing various services.
We demand that the Committee, that is being set up under the chairmanship of Chief Executive Officer, Indian Banks’ Association, will engage with all the stakeholders, including the affected public, and remove the cap on free transactions from ATMs. We also demand that the RBI does not deal with the charges in piecemeal but scraps all bank charges.
The current decision to ‘boost digitalisation’ is yet another indicator that the RBI is interested in promoting banking among only a particular class (tech-savvy, urban, middle and upper-middle class) while ignoring the interests of the weaker sections of society, which are affected most due to higher charges on basic services.
For instance, the charges for NEFT and RTGS varies from Rs 1 to Rs 5 and Rs 5 to Rs 50 (GST excluded) respectively. These are negligible if one compares them with other charges like a penalty for not the maintaining minimum balance, which varies from Rs 10 to Rs 600, and charges on cash transactions, ranging from Rs 10 to Rs 160, done at bank branches.
Recently, a pilot study conducted by RBI in Mumbai revealed that over than 25 per cent of the customers are unhappy with the charges such as penalty on non-maintenance of minimum balance, cash deposit charges at home and non-home branches, cheque return charges (deposited by the customers) and for signature verification.
These charges have also become an impediment in implementing various welfare schemes being run by the government. Just last week, the Maharashtra government has blamed banks for applying various charges on beneficiaries’ accounts, which is making it difficult for beneficiaries to access the money.
On the one hand, banks are increasing charges levied for providing for banking services for common people to compensate for their losses created by massive non-performing assets, thus hurting mostly the weaker sections of society. And on the other, they are allowing free transactions for online users, again neglecting people still dependent on brick and mortar bank branches for their banking activities.
Moreover, this development has to be seen in the broader context of banking reforms that the current government is planning. The push for digitalisation and putting charges on transactions done at banks will push the people away from brick and mortar banks and will make way for reducing the bank branches, the merger of banks, and consequently reducing the number of bank employees.
Our campaign "No Bank Charges” has witnessed hundreds of people sending postcards and emails to the RBI governor, the Finance Minister, and the Prime Minister demanding to scrap all the bank charges.
Our demands:

The committee on ATM charges should be open for consultations and remove the cap on transactions as well as the charges.
RBI does not deal with the charges in piecemeal but scraps all bank charges.

The Financial Accountability Network India (FAN India) – a group of civil societies, unions, NGOs and peoples movements – demands from the RBI and the government that it looks into the matter of bank charges on banking services and take immediate actions to remove all the charges which act against the interest of the people.

Comments

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

What Epstein Files reveal about power, privilege and a system that protects abuse

By Bhabani Shankar Nayak* The Jeffrey Epstein scandal is not merely the story of an individual offender or an isolated circle of accomplices. The material emerging from the Epstein files points to structural conditions that allow abuse to flourish when combined with power, privilege and wealth. Rather than a personal aberration, the case illustrates how systems can create environments in which exploitation becomes easier to conceal and harder to challenge.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Green capitalism? One-billion people in the Global South face climate hazards

By Cade Dunbar On Friday, 17 October 2025, the UN Development Programme released the 2025 edition of its Multidimensional Poverty Index Report . For the first time, the report directly evaluates their multidimensional poverty data against climate hazards, exposing the extent to which the world’s poor are threatened by the environmental crisis. According to the UNDP, approximately 887 million out of the 1.1 billion people living in multidimensional poverty are exposed to climate hazards such as extreme heat, flooding, drought, and air pollution.

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat* Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu. He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Electoral Integrity Forum seeks immediate halt to SIR 2.0, calls for mandatory social audit

By A Representative The Forum for Electoral Integrity has urged the Election Commission of India (ECI) to immediately pause the ongoing Special Intensive Revision (SIR) 2.0 of electoral rolls, warning that the exercise is generating widespread distress and may result in unlawful exclusion of valid voters. In a memorandum dated November 20, 2025, addressed to the Chief Election Commissioner and Election Commissioners, M.G. Devasahayam, Convener of the Forum for Electoral Integrity and Coordinator of the Citizens’ Commission on Elections, called the process legally unsound, administratively disruptive, and constitutionally problematic.

Search This Blog