Money & Banking

Pay more for bank services from April 1

Beena Parmar Mumbai | Updated on January 24, 2018 Published on March 31, 2015

From Wednesday, private sector bank customers will now have to shell out more for financial services, especially for non-maintenance of minimum balance in accounts, as banks including ICICI Bank and HDFC Bank have hiked service charges and penalties.

The revised charges, among others, are for non-maintenance of average monthly balance, cash deposit at branches, internet or phone banking pin, and issuance of cheque books.

Increased charges

Major private lenders – ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank – have increased charges and penalties. ICICI Bank will charge ₹100 more for non-maintenance of average monthly balance in metros and ₹50 more in semi-urban areas. The average monthly balance requirement for urban and semi-urban customers is ₹10,000 and ₹5,000, respectively.

ICICI Bank said it will notify customers by SMS, e-mail, letter, etc that in the event of the minimum balance not being restored in the subsequent month, non-maintenance of MAB charges will be applicable. Kotak Mahindra Bank has increased those charges to ₹300-500 per month from ₹250-400.

In case of HDFC Bank, non-maintenance of minimum MAB customers will be charged anywhere between ₹150 and ₹600 depending on the type of account and the amount maintained. Also, customers will be charged ₹75 for an additional cheque book of 25 leaves.

HDFC Bank has also initiated new charges. Any deliverable returned by courier will be charged ₹50 per instance, TIN/IPIN regeneration (requests received at the branch for physical dispatch) will also incur ₹50.

RBI has asked banks to inform account holders through email, SMS or letter of the imminent charges when the minimum balance requirement is breached.

Further, banks must also give customers a grace period of a month from the date of shortfall before penalising for the same and the charges must be reasonable.

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Published on March 31, 2015
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