Lok Sabha Question No. 1045 (UNSTARRED), answered on 2019-02-08
Subject: Charges Levied by Banks
Ministry: FINANCE
Asked by: N.K. PREMACHANDRAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 1045

TO BE ANSWERED ON FRIDAY, FEBRUARY 8, 2019/ MAGHA 19, 1940 (SAKA)

## Charges Levied by Banks

## 1045. SHRI N.K.PREMACHANDRAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken cognizance that the banks are levying huge charges for rendering service and imposing such charges without the consent of the customers and deduct the amount arbitrarily from the accounts;
- (b) if so, the action taken by the Government to reduce the charges and to ensure that prior notice is issued;
- (c) the details of charges imposed by State Bank of India (SBI) for each service;
- (d) whether the Government has taken cognizance that the service charges of the banks are not affordable;
- (e)  if  so,  the  action  taken  by  the  Government  to  regulate  the  service  charges  imposed  by  the banks; and
- (f) whether the Government proposes to establish a system to regulate and monitor the charges imposed by the banks and if so, the details thereof?

## Answer The  Minister of State in the Ministry of Finance (SHRI  SHIV PRATAP SHUKLA)

(a), (b) and (d) to (f) As per guidelines issued by Reserve Bank of India (RBI), basic banking services  like  deposit,  withdrawal  of  cash  at  bank  branch  as  well  as  ATMs,  receipt/credit  of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments, etc. are provided without any charges for  Basic  Savings Bank Deposit (BSBD) accounts, including accounts opened under Pradhan Mantri Jan DhanYojana (PMJDY).

Further, as per the extant guidelines of RBI, there is no requirement of maintaining minimum balance in Basic Savings Bank Deposit (BSBD) accounts, including Jan Dhan accounts and as such, no charge is applicable for non-maintenance of minimum balance in these accounts and hence, no service charges.

For accounts other than BSBD accounts, as per Reserve Bank of India (RBI)'s Master Circular on 'Customer Service in Banks' dated July 1, 2015, banks are permitted to fix service charges on    various services rendered by them, as per their Board approved policy, while ensuring that the charges are reasonable and not out of line with the average cost of providing these services. Further,  banks  have  been  advised  to  identify  basic  services  and  the  principles  to  be  adopted/ followed by them for ensuring reasonableness in fixing such charges. Banks are also advised to take steps to ensure that customers are made aware of the service charges upfront and changes in the service charges are implemented only with the prior notice to the customers.

(c)  As  informed  by  State  Bank  of  India  (SBI),  the  details  of  free  and  chargeable  banking services offered by them are provided in the Annexure to this reply.

*****

## Annexure  as referred to in part (c) of reply to Lok Sabha  Q. No. 1045 for 08.02.2019 regarding 'Charges Levied by Banks'

## FREE SERVICES OFFERED TO CUSTOMERS HAVING NORMAL/ REGULAR SAVINGS BANK ACCOUNT

| Sl. No.   | Facility                                               | Free Services                                                                                                                                 | Chargeable Services                                                                    |
|-----------|--------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| 1         | Issue of Multi City Cheque Book                        | 25 cheque leaves : free in a year                                                                                                             | After 25 Cheque Leaves: Rs.3/- + GST per cheque                                        |
|           |                                                        | For Senior Citizens: free                                                                                                                     | No Charges                                                                             |
| 2         | Charges for Non-maintenance of Monthly Average Balance | Attached separately.                                                                                                                          | Attached separately.                                                                   |
| 3         | Issue of Passbook                                      | Issue of first passbook and continuation passbook: free                                                                                       | Duplicate passbook: Rs.50/- + GST For old entries :Rs.50/- + GST per page (40 entries) |
| 4         | Transfer of Accounts                                   | Free                                                                                                                                          | ---                                                                                    |
| 5         | Account Closure Charges                                | Upto 14 days of opening : free of account Beyond 1 year of : free opening of account Accounts closed on account : free of deceased depositors | After 14 days upto 1 year : Rs.500/- + GST                                             |
| 6         | Setting of Standing Instructions at Branch             | Free                                                                                                                                          |                                                                                        |
| 7         | Interest Certificate                                   | Original - free                                                                                                                               | Duplicate - Rs.150/- + GST                                                             |
| 8         | Collection of cheques under Speed Clearing             | Upto Rs.1 lakh - Free                                                                                                                         | Above Rs.1 lakh - Rs.200/- + GST                                                       |

|   9 | Cash Deposit transactions                          | 3 transactions in a month: Free                                                                                                                                                                                    | Beyond 3 transactions : Rs.50/- + GST                                                                                                                                                 |
|-----|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  10 | Cash Deposit on Cash Points - CDM & Cash Recyclers | By debit Card to Card : Free linked account                                                                                                                                                                        | ---                                                                                                                                                                                   |
|  11 | Cash Withdrawal Charges                            | At Branch : Upto 2 transactions per : Free month At our Bank ATM: 5 transactions per month : Free At other Bank: 3 transactions in Metro : Free Centres per month 5 transactions in other : Free centres per month | Beyond 2 transactions : Rs.50/- + GST Per month Beyond 5 transactions : Rs.10/- + GST per month Beyond 3 transactions : Rs.20/- + GST per month Beyond 5 transactions : Rs.20/- + GST |
|  12 | Debit Card Issuance                                | Classic Debit Card : Free and Global Debit Card                                                                                                                                                                    | ---                                                                                                                                                                                   |
|  13 | Debit Card Annual Maintenance Charges              | For the first year : Free                                                                                                                                                                                          | From beginning of the second year: Classic Debit Card : Rs.125/- + GST Silver/Global/Yuva/Gold : Rs.175/- + GST Debit Card Platinum Debit Card : Rs.250/- +GST                        |
|  14 | SMS Alert Charges from debit card holders          | Quarterly Average Balance is above Rs.25,000/- Free                                                                                                                                                                | QAB of Rs.25000/- &below : Rs.15/- per quarter                                                                                                                                        |
|  15 | Stop Payment instruction                           | --                                                                                                                                                                                                                 | Rs.100/- + GST per instrument, maximum Rs.500/- + GST per instance                                                                                                                    |

|   16 | Signature Verification per instance                   | --   | Rs.150/- + GST   |
|------|-------------------------------------------------------|------|------------------|
|   17 | Photo Attestation Charges                             | --   | Rs.150/- + GST   |
|   18 | ATM card/kit returned by courier due to wrong address |      | Rs.100/- + GST   |

## Details of Average Monthly Balance (AMB) requirement & charges (SBI)-w.e.f 01.04.2018

| Metro &Urban (AMB= Rs. 3000/-)   | Charges p.m.   |
|----------------------------------|----------------|
| Rs. 3000                         | Nil            |
| Rs. 1500 to Rs. 2,999            | Rs. 10/- +GST  |
| Rs. 750 to Rs. 1499              | Rs. 12/- +GST  |
| 0 to Rs. 749                     | Rs. 15/- +GST  |
| Semi-Urban (AMB Rs. 2000/-)      |                |
| Rs. 2000                         | Nil            |
| Rs. 1000 to Rs. 1,999            | Rs 7.50 +GST   |
| Rs. 500 to Rs. 999               | Rs 10.00 +GST  |
| 0 to Rs. 499                     | Rs.12.00+GST   |
| Rural (AMB) Rs 1,000/-)          |                |
| Rs. 1000                         | Nil            |
| Rs. 500 to Rs. 999               | Rs 5.00 +GST   |
| Rs. 250 to Rs. 499               | Rs. 7.50 +GST  |
| 0 to Rs. 249                     | Rs 10.00 +GST  |