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Business News/ Money / Personal Finance/  No service charges on these bank accounts, finance ministry clarifies
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No service charges on these bank accounts, finance ministry clarifies

The finance ministry has issued a clarification mentioning that service charges levied by the PSBs, have not been increased recently
  • There have been reports circulating in the media about the steep hike in service charges imposed by the banks
  • No other PSB has increased such charges recently, the finance ministry said (MINT_PRINT)Premium
    No other PSB has increased such charges recently, the finance ministry said (MINT_PRINT)

    The finance ministry has issued a clarification mentioning that service charges levied by the public sector banks, have not been increased recently. There have been reports circulating in the media about the steep hike in service charges imposed by the banks. On the Basic Savings Bank Deposit (BSBD) accounts including Jan Dhan accounts, no service charge is applicable. There will be "no service charges on the 60.04 crore BSBD accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society, for the free services prescribed by RBI," the finance ministry said in a statement.

    “Regular Savings accounts, Current Accounts, Cash credit accounts & Overdraft accounts: While the charges have not been increased, Bank of Baroda had made certain changes w.e.f. 1st Nov 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," the finance ministry said.

    Following the clarification by the finance ministry, Bank of Baroda withdrew the new changes in the wake of COVID-19 outbreak with immediate effect.

    “We refer to our circular No.HO: BR: 112:393 dated 29.09.2020 regarding revision of Cash related service charges related to basic services w.e.f 01.11.2020. In view of the current prevailing COVID-19 pandemic and its impact on the Economy, it has been decided to withdraw the above circular with immediate effect," the public sector lender said on Tuesday.

    Further, no other PSB has increased such charges recently, the ministry said.

    "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-19 pandemic," the statement added.

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    Published: 04 Nov 2020, 05:36 PM IST
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