Stalin Criticizes RBI's ATM Policy: 'Institutionalised Extraction' or Digitisation?

Tamil Nadu Chief Minister M K Stalin criticizes RBI's decision enabling banks to charge for ATM withdrawals beyond the monthly limit. He argues it contradicts the digitisation agenda and harms financial inclusion, especially affecting the poor, thus terming it 'institutionalised extraction'.

Tamil Nadu Chief Minister M K Stalin has expressed strong disapproval of the Reserve Bank of India's recent policy allowing banks to impose charges for ATM withdrawals beyond a specified monthly limit.

In a critical statement, Stalin suggested that these charges would compel individuals to withdraw more cash than necessary, undermining the financial inclusion agenda initially set in motion by demonetisation and digital India initiatives. He labeled this approach as 'institutionalised extraction,' as opposed to genuine digitisation.

Stalin highlighted that the new policy disproportionately impacts vulnerable groups, such as MNREGA beneficiaries and recipients of the state's Kalaignar Magalir Urimai Thogai scheme, which provides financial assistance to women. He emphasized that while the poor face extraction, it is the wealthy who benefit.

(With inputs from agencies.)