TNCC president Manickam Tagore opposes proposed charges on Jan Dhan account withdrawals
TNCC president Manickam Tagore has criticized the government and banks for planning to impose fees on withdrawals from basic Jan Dhan savings accounts. He argues that these charges disproportionately affect the poor and may discourage digital financial inclusion.
Why it matters
The debate highlights the conflict between banking profitability and the financial inclusion of low-income populations in India's digital economy.
Tamil Nadu Congress Committee (TNCC) president B. Manickam Tagore on Saturday (August 22, 2026) alleged that the Union government was planning to burden poor and ordinary bank account holders by imposing charges on withdrawals from basic savings accounts, and demanded that the proposed fee be withdrawn.
In a statement, Mr. Tagore said banks had decided to levy a penalty of ₹15, plus 18% GST, on withdrawals made more than four times a month from such accounts, including through ATMs. He said the State Bank of India had announced that the charge would amount to ₹17.70 per transaction and would come into effect from October 1.
He claimed that the Reserve Bank of India had approved the move and that other banks could follow SBI’s decision.
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