For some time now, one news was dominating in a section of the media concerning the fact that all bank services will be made chargeable from 20th January, 2018. However, Rajeev Kumar, Secretary, Department of Financial Services, Ministry of Finance, sought to allay concerns and tweeted recently that “No proposal by Banks to discontinue free services from 20th January. Pure Rumours. Pl Ignore, advises Indian Banking Association clarifying that rumours in section of social media are baseless and no such blanket removal.” The Indian Banks Association also issued a clarification to this effect.
However, on the same day of the government clarification, we came across a document put out by Bank of India on their site, which showed details of their plans regarding making some services chargeable from 20.01.2018, which were earlier free. For instance, till now you were not required to pay anything to the bank for making a request for change in your communication address or for updation of your mobile number. However, 20th January 2018 onwards you will have to pay Rs 25 for every such request. Similarly, the bank was not charging anything for making a request for a duplicate passbook/FDR receipt. However, starting from 20th January you will have to shell out Rs 50 per request.
Earlier, you didn’t have to pay anything to the bank for getting an interest certificate. However, now you will have to pay Rs 50 per certificate. You will also have to pay Rs 25 for every request for updation of KYC-related documents. In fact, from cash withdrawal to cash deposit, you are required to pay for most of the things now.
Here is a list of some of the proposed charges by BoI for services which were earlier free (Applicable from 20.01.2018):
|Present Activity||Present Charge||Proposed Activity||Proposed Charge|
|Cash withdrawal up to maximum Rs.50,000/- allowed only to account holder by self-cheque||No charges||1.Cash withdrawal up to maximum Rs.50,000/- allowed only to account holder by self-cheque.
2.Cash withdrawal up to maximum Rs.10,000/- allowed to 3rd party
holder by cheque.
|Rs 10 per transaction (auto debit)|
|Cash deposit of any amount.||No charges||Cash deposit of maximum Rs.2 lakh per day in CD/CC/OD & any amount in SB [as in SBI]||1. For SB Upto Rs. 50,000 per day free. For amount in excess of Rs. 50000/-, Rs.2.50 per thousand or
part thereof .Minimum Rs. 50/-.
2. For CA/CC/OD/Others Rs.25000
per day free. For amount in excess of Rs. 25000/-, Rs.2.50 for every thousand rupees or part thereof. Minimum Rs. 50/-
|Passbook updation of transaction entries.||No charges||Passbook updation of transaction entries.||Rs.10/- per updation (auto debit)|
|Providing statement of balance to account holder||No charges||Providing statement of balance to account holder.||Rs.25/- per statement (auto debit).|
|Cheque book request by customers||No charges||Cheque book request by customers||Rs.25/- per request (auto debit).|
|Customer request for fund transfer via NEFT, RTGS, etc.||No charges||Customer request for fund transfer via NEFT, RTGS, etc.||1. Rs.25 per request for amount upto Rs. 2.00 lacs.
2. Rs.50 for amount above Rs.2.00 lacs (auto debit).
|Customer request for interest certificate||No charges||Customer request for interest certificate||Rs.50/- per certificate|
|Customer request for change of communication address and updation/ change of mobile no.||No charges||Customer request for change of communication address and updation/ change of mobile no.||Rs.25/- per request|
|Customer request for updation of KYC related documents.||No charges||Customer request for updation of KYC related documents.||Rs.25/- per request|
Being one of India’s largest banks, this move creates concerns of other large banks following the example and charging for services that have so far been free.
(This story was earlier published with the headline ‘Soon, pay for each and every banking transaction, even for passbook updates, address changes’)