Lok Sabha Question No. 1207 (UNSTARRED), answered on 2025-07-28
Subject: Earning of Banks through Service Charges
Ministry: FINANCE
Asked by: Dr. T Sumathy Alias Thamizhachi Thangapandian, Thiru D M Kathir Anand

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

## LOK SABHA UNSTARRED QUESTION NO. 1207

ANSWERED ON MONDAY, JULY 28, 2025/SRAVANA 6, 1947 (SAKA)

## Earning of Banks through Service Charges

## 1207.   DR. T SUMATHY ALIAS THAMIZHACHI THANGAPANDIAN: THIRU D M KATHIR ANAND:

Will the Minister of Finance be pleased to state:

- (a) whether the Public Sector Banks and Scheduled Banks are charging money for various services rendered to customers for both online services and through Bank networks throughout the country;
- (b) if so, the details thereof and the total amount earned by Banks through their online services during the last five years;
- (c) whether it is true that the steep rise in the income earned by the Banks for both online services and through Bank networks throughout the country and if so, the details thereof; and
- (d) whether the Government has utilised its Forex and gold reserves to stabilize the value of INR against US Dollar and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) As per the Reserve Bank of India's (RBI) Master Circular on 'Customer Service in Banks', the Board of respective banks are empowered to prescribe service charges on various services offered by them, subject to these charges being reasonable and not out of line with the average cost of providing these services. Further, banks have also been advised to display the information relating to service charges on their respective websites and notice boards to enable customers to obtain such information;
- (b) & (c)  The  aggregate  amount  earned  by  the  Public  Sector  Banks  (PSBs)  through  their  online services (Merchant transactions through Debit cards & Internet / Mobile Banking, Government

Business transactions, Forex transactions, Fee payment, Payment Services-IMPS/NEFT/RTGS) during the last five years is detailed as under:

|   Sr.No. | FY      |   Amount in ₹ Crores |
|----------|---------|----------------------|
|        1 | 2020-21 |               365.03 |
|        2 | 2021-22 |               466.57 |
|        3 | 2022-23 |               485.28 |
|        4 | 2023-24 |               512    |
|        5 | 2024-25 |               510.05 |

Further, the non-interest income earned by the PSBs, through all services provided, including, online mode and bank networks throughout the country has increased with a Compound Annual Growth Rate (CAGR) of 9.15% during the last 5 years (FY 2019-20 to FY 2024-25).

- (d) According to RBI, the value of the Indian Rupee (INR) is market-determined, with no target or specific level or band. The RBI regularly monitors the foreign exchange market and intervenes in situations of excess volatility. RBI's foreign exchange market interventions from September 2024 to April 2025 in terms of USD and INR has been given below:

| Month          | Net sale (-) / purchase (+) of USD in USD Million*   | ₹ equivalent ( ₹ Crores)   |
|----------------|------------------------------------------------------|----------------------------|
| September 2024 | 9,639                                                | 80,549                     |
| October 2024   | -9,275                                               | -77,969                    |
| November 2024  | -20,228                                              | -1,70,630                  |
| December 2024  | -15,150                                              | -1,28,753                  |
| January 2025   | -11,139                                              | -95,388                    |
| February 2025  | -1,621                                               | -14,024                    |
| March 2025     | 14,355                                               | 1,24,586                   |
| April 2025     | -1,660                                               | -14,635                    |

*Source: RBI

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