TNCC president Manickam Tagore opposes proposed charges on Jan Dhan account withdrawals

Tamil Nadu Congress Committee (TNCC) president B. Manickam Tagore has publicly opposed the proposed introduction of charges on withdrawals from Jan Dhan accounts, accusing the Union government of placing financial burdens on low-income individuals. On Saturday, August 22, 2026, Tagore stated that the government was planning to impose fees on frequent withdrawals from basic savings accounts, potentially affecting millions of vulnerable users. According to his statement, the proposed charges would include a penalty of ₹15, along with 18% Goods and Services Tax (GST), making each withdrawal cost approximately ₹17.70. The measure, he claimed, would take effect starting October 1, 2026. Tagore cited the State Bank of India (SBI) as the first major institution to announce its intention to implement the new policy. He noted that SBI’s decision would set a precedent for other banks to follow, as the Reserve Bank of India (RBI) had already given its approval. This move, according to Tagore, would apply to all basic savings accounts, including those under the Pradhan Mantri Jan Dhan Yojana (PMJDY). These accounts were initially launched in 2005 as “No Frills Accounts” under the administration of former Prime Minister Manmohan Singh before being rebranded by the current government. The Tamil Nadu leader emphasized that PMJDY had played a crucial role in expanding financial inclusion, particularly among marginalized communities. He pointed out that nearly 56 crore such accounts have been opened nationwide, with approximately 53 crore held by public sector banks. Tagore argued that the imposition of these charges would undermine the very purpose of the scheme, which aimed to provide affordable banking services to the economically disadvantaged. In addition to criticizing the proposed withdrawal fees, Tagore expressed concerns about the government’s broader strategy toward digital payments. He highlighted that the rise in cash circulation, from roughly ₹9 lakh crore in January 2017 to ₹43 lakh crore today, contradicted efforts to promote digital transactions. This increase, he suggested, might be attributed to the difficulty many citizens face in accessing reliable internet or electricity, especially in rural areas. Furthermore, Tagore accused the government of adopting a double standard in its financial policies. He claimed that banks had collectively waived loans totaling ₹16 lakh crore for large corporate entities over the past decade, while simultaneously attempting to impose additional costs on small account holders. This discrepancy, he argued, reflected a lack of genuine commitment to supporting the common citizen. The controversy surrounding the proposed charges has sparked discussions within political circles and among financial institutions. While some officials have defended the measures as necessary for maintaining operational sustainability, others have echoed Tagore’s concerns about their impact on lower-income populations. As the debate continues, the final outcome will likely depend on how regulatory bodies respond to growing public sentiment and potential legal challenges.