InvestorQ : What are the different service charges levied by banks?
Purvesh made post

What are the different service charges levied by banks?

varsha Motwani answered.
9 months ago

Banks levy different charges from their customers for providing services to them. These charges can be:

1.Minimum balance charges: Most of the banks direct customers to maintain a minimum balance in their bank accounts be it monthly or quarterly. If such balance is not maintained the customers are liable to pay banks some charges, depending upon their Monthly/Quarterly Average Balance Requirements. Banks can charge a minimum of Rs 15 to a maximum of Rs 500 for non-maintenance of required balance.

2. ATM, Debit Card, Cheques: According to the guidance issued by RBI, banks can charge customers for transactions done through ATM, for more than 5 times in a month. These charges vary between Rs. 8-25 depending upon the nature of the transaction. Banks also charge you in case you misplace your card. The amount varies between Rs. 50-500, depending upon the nature of the card and the bank.

3. Alerts and instructions charges: SMS alerts help to protect customers against fraud, hence it is a security feature that comes at a cost. Banks generally charge about Rs 15 per quarter for providing SMS services, some banks provide it for free or some banks deduct monthly charges.

Standing instructions given to your bank to pay your EMI, Bill, etc. are also chargeable as banks facilitate these transactions automatically. Some banks charge one-time fees for setting up any standing instruction and a recurring fee every time those transactions are repeated.

4.Cash handling charges: If you deposit money from a distant branch to your account, you are charged cash handling fees. Whether you have deposited the money through banks or through CDM installed in the ATMs. Banks generally charge Rs. 25-150 for handling such transactions. However, if the cash is deposited through the home branch, no such transactions are to be levied.

5.Issuing Documents: Banks generally charges for issuing duplicate documents such as passbook/debit cards, cheque book, etc. to their customers. These charges vary according to the document that needs to be issued. Such as for cheque books there are separate charges levied by the bank. Printed statements are also chargeable. Banks also charge for signature verification.

6.Fund transfer charges: NEFT and RTGS have been recently declared to be charge-free by RBI. However, IMPS is still chargeable, the charges for the same varies between Rs. 1- 25.

So, if you want to avoid paying unnecessary charges, you should keep a track of your account transactions and bank services. Try not to avail of any chargeable service, unless that is the only way out.