Having a bank account has become a necessity in today’s world. A bank account is needed for a variety of needs – from paying college fees online, doing online transactions, to receiving money from government programs. Almost all of us have a bank account, but it is not free. Banks charge a certain amount for providing various services to its customers. Banks levy certain fees to allow customers to withdraw money from ATMs, texting, and other facilities.
Let’s take a look at the fees charged by major banks for providing various services:
Cash transactions: Most banks only allow three to five transactions per month on a savings account. Banks also charge a fee if customers exceed a specified number or amount. Axis Bank charges a fee if a customer exceeds the limit of four free transactions or cash withdrawals up to Rs 2 lakh per month, whichever comes first. As of May 1, Axis Bank users must now pay 2.5% of the amount withdrawn. from the savings account for cash withdrawals above the free limit.
The Bank of Baroda allows three transactions per month (excluding ATM withdrawals) for free, but beyond that, customers of savings banks in metropolitan urban areas will be charged Rs 125 / – per transaction, while seniors, retirees and clients of savings bank accounts based in rural / semi-urban areas will be charged Rs 100 / – per transaction. Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders have been exempt from these fees.
ATM withdrawal fees: In a month, banks allow up to five transactions at their own ATMs and three transactions at other banks’ ATMs, free of charge. The State Bank of India (SBI) and ICICI Bank allow its regular savings bank account holders eight free transactions in metropolitan cities, including five transactions from their own ATMs and three transactions from ATMs in another bank. Beyond this limit, banks charge between 20 and 50 Rs per withdrawal. Each bank has set its own ATM withdrawal fees.
ATM transaction failed: Even though the Reserve Bank of India (RBI) has stated that banks cannot charge customers for failed transactions, banks do charge a fee for a failed ATM transaction due to an insufficient balance in a customer’s accounts. . SBI charges a fee of Rs 20 plus GST if the transaction fails. HDFC Bank, ICICI Bank, Kotak Mahindra, Yes Bank charges Rs 25 per failed transaction.
The minimum balance: Banks take a charge from the customer’s accounts if the bank balance falls below the requested limit. ICICI Bank has required its clients to maintain a minimum balance of 10,000 rupees in metropolitan and urban branches and 5,000 rupees in savings accounts for semi-urban and rural branches. In the event that a customer fails to maintain the minimum balance, the bank will impose a penalty of Rs100 + 5% of the deficit of the minimum balance required in metropolitan / urban / semi-urban / rural areas.
Since March 2020, SBI has stopped billing its customers in order not to maintain the minimum balance. The bank imposed a penalty of 5 to 15 rupees plus tax on non-maintenance of the average monthly balance of 3,000 rupees, 2,000 rupees and 1,000 rupees respectively in metropolitan, semi-urban and rural areas.
SMS charges: Banks send a message to their customers about transactions made from their accounts, which are usually billed. Axis Bank charges 25 paise for each SMS alert with a maximum of Rs 25 per month. One-time passwords and promotional messages have been exempt from SMS charges.
In August of last year, SBI waived the SMS service charge. Previously, SBI charged 12 rupees to debit card holders with an average balance of 25,000 rupees and less on their account.
Good news for SBI Savings Account holders! Now you don't have to pay charges for SMS service and non-maintenance of monthly average balance. #SavingsAccount #SMSCharges #MAB #SBI #StateBankOfIndia pic.twitter.com/v3IcqzcsUh
— State Bank of India (@TheOfficialSBI) August 18, 2020
Documentation: For issuing documents, banks charge their customers. SBI charges Rs 150 for signature verification. For each financial year, the banks offer an annual statement of account. However, if customers request a duplicate account statement, it can cost them between Rs 50 and Rs 100. ICICI Bank charges Rs 100 per duplicate statement.
Check: RBI has set a maximum charge of 150 per check for prompt clearing of checks worth more than Rs 1 lakh. There is no charge on checks for values up to Rs 1 lakh. A customer has to pay a fee of ₹ 100-150 if the check is returned.
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