Institutionalised extraction: Stalin slams RBI's ATM withdrawal charges

Chennai: Tamil Nadu Chief Minister M K Stalin has strongly criticised the Reserve Bank of India's (RBI) decision to allow banks to charge for ATM withdrawals beyond the monthly limit. Stalin argued that this move will inadvertently encourage people to withdraw more cash than necessary. He further alleged that this decision is counterproductive to the government's digitisation efforts, stating, "This is not digitisation, it is institutionalised extraction."

Stalin said that the union government urged everyone to open bank accounts, and then came demonetisation, pitching Digital India.

In a social media post, he said, "What followed? Charges on digital transactions, penalties for low balances and now the RBI has allowed banks to charge up to Rs 23 for ATM withdrawals beyond the monthly limit. This will make people withdraw more than they need and, in particular, negate the objectives of financial inclusion of the poor.

Beneficiaries of MNREGA, which is already starved of funds, and the poor who benefit from our KMUT (Kalaignar Magalir Urimai Thogai scheme of the Tamil Nadu government, the Rs 1,000 monthly assistance to women beneficiaries) cash transfers will be the ones who will be hit the hardest. This is not digitisation. It is institutionalised extraction. The poor swipe, the rich smile."

(inputs from PTI)