Lok Sabha Question No. 3470 (UNSTARRED), answered on 2019-07-15
Subject: Bank Charges for Transactions
Ministry: FINANCE
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 3470

ANSWERED ON MONDAY, JULY 15, 2019/ ASHADHA 24, 1941 (SAKA)

## BANK CHARGES FOR TRANSACTIONS

## 3470.  SHRI MAGUNTA SREENIVASULU  REDDY:

Will the Minister of FINANCE be pleased to state:

(a) whether the banks charge a fee for every transaction due to which bank deposits are declining and if so, the details thereof;

(b) whether banks charge fee for both Automated Teller Machine and cheque transactions due to which small saving account holders are closing their bank accounts; and

(c) if so, the details thereof and the number of account holders in the Public Sector Banks from the year 2015 till May 2019, year-wise?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (c) As per extant guidelines of Reserve Bank of India (RBI), following basic minimum facilities to the Basic Savings Bank Deposit Account (BSBDA) are provided free of charge and without any requirement for maintaining minimum balance in the account:

- i. Deposit of cash at bank branch as well as ATMs/Cash Deposit Machines (CDMs).
- ii. Receipt/  credit  of  money  through  any  electronic  channel  or  by  means  of  deposit /collection of cheques drawn by Central/State Government agencies and departments.
- iii. No limit on number and value of deposits that can be made in a month.
- iv. Minimum of four withdrawals in a month, including ATM withdrawals.
- v. ATM Card or ATM-cum-Debit Card.

Accordingly, as on March, 2019 the above facilities are provided to 57.3 crore BSBD accounts (including 35.27 crore PMJDY accounts) free of charge.

In addition to the above, banks may provide additional value-added services, including issue of cheque  book,  beyond  the  above  minimum  facilities,  which  may/may  not  be  priced  (in  nondiscriminatory manner) subject to disclosure. The availment of such additional services are to made  at  the  option  of  the  customers.  However,  while  offering  such  additional  services, banks   shall  not     require  the  customer  to   maintain  a  minimum  balance  and  offering  such additional  services  would  also  not  make  BSBD  account a  non-BSBD  Account,  so  long  as the   prescribed minimum services   are provided   free of charge by the banks.

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. Banks have been advised to identify basic services and the principles to be adopted/ followed by them for ensuring reasonableness in fixing such charges. They 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.

As apprised  by  Reserve  Bank  of  India  (RBI),  the  total  number  of  savings  accounts  in  Public Sector Banks    has increased since 2015.  The details are as follows:

| Year   | Total no. of Savings Accounts (in crore)   |
|--------|--------------------------------------------|
|        | 2015 88.39                                 |
| 101.37 | 2016                                       |
| 2017   | 112.88                                     |
| 2018   | 119.25                                     |

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