The Finance Ministry, on Tuesday, cleared the air on service charges levied by banks, and asserted that there was no truth to media reports alluding to the steep increase in service charges imposed by public sector banks (PSBs).
On the Basic Savings Bank Deposit (BSBD) accounts, no service charge is applicable on the 60.04 crore accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society for the free services prescribed by the RBI, an official release said.
As regards Regular Savings accounts, Current Accounts, cash credit accounts and overdraft accounts, the charges have not been increased, the release added.
Bank of Baroda had made certain changes with effect from November 1with regard to the number of free cash deposits and withdrawals per month. The number of free cash deposits and withdrawalshave 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 situation, they have decided to withdraw the changes. Further, no other PSB has increased such charges recently, the release added.
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 on the costs involved, other PSBs have also intimated that they do not propose to raise bank charges in the near future in view of the pandemic, the release said.