Home >Industry >Banking >Due to Covid, no PSU bank will raise charges for deposits, withdrawals in near future: Govt

The government on Tuesday quashed all the media reports alluding to steep increase in service charges by certain Public Sector Banks (PSBs). In this regard, the Ministry of Finance issued a "factual position".

"No service charge is applicable on the 60.04 crore Basic Savings Bank Deposit accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society, for the free services prescribed by RBI," said the ministry in an official statement.

The ministry's clarification comes close on the heels of Bank Of Baroda announcing on Sunday that it will be charging customers for deposits, withdrawals above certain limits, which would be effective 1 November, 2020. However, the ministry on Tuesday said that owing to the ongoing coronavirus situation in the country, the state-owned lender has "decided to withdraw the changes".

"Regular Savings accounts, Current Accounts, Cash credit accounts & Overdraft accounts: In this regard, while the charges have not been increased, Bank of Baroda had made certain changes w.e.f. 1st November, 2020, with regard to the number of free cash deposits and withdrawals per month. The number of free cash deposits and withdrawals, have been reduced from 5 each per month to 3 each per month, with no change in the charges for transactions in excess of these free transactions. Bank of Baroda has since informed that in the light of the current COVID related situation, they have decided to withdraw the changes. Further, no other PSB has increased such charges recently," said the FinMin in its statement.

The ministry further said that all banks, including PSBs, are permitted to levy charges for their services

Although, as per RBI guidelines, all banks, including PSBs, are permitted to levy charges for their services in a fair, transparent and non-discriminatory manner, based upon costs involved, other PSBs have also intimated that they do not propose to raise bank charges in the near future in view of the COVID pandemic.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout