RBI allowing banks to charge for ATM withdrawals 'institutionalised extraction,' alleges Tamil Nadu CM MK Stalin

NEW DELHI: Tamil Nadu's chief minister M K Stalin criticised the Reserve Bank of India's recent decision on Sunday regarding additional charges for ATM withdrawals exceeding monthly limits. He contends that this policy will encourage people to withdraw larger sums than necessary.
He stated, "this is not digitisation, it is institutionalised extraction."
Stalin highlighted how the central government initially promoted bank account creation, followed by demonetisation and Digital India initiatives. Through social media, he pointed out the subsequent implementation of digital transaction fees and minimum balance penalties.
He noted that RBI's latest approval for banks to levy up to Rs 23 for ATM withdrawals beyond monthly limits would particularly affect financial inclusion efforts for economically disadvantaged individuals.
He emphasised that this decision would significantly impact MNREGA workers, who already face funding constraints, and beneficiaries of Tamil Nadu's KMUT (Kalaignar Magalir Urimai Thogai) scheme, which provides Rs 1,000 monthly assistance to women.
He concluded by stating, "This is not digitisation. It is institutionalised extraction. The poor swipe, the rich smile."