Bank of Baroda has withdrawn the changes implemented from 1 November. The bank says that it has taken this decision keeping in mind the current COVID situation. Let us tell you that after the news of increasing the service charge by some other public sector banks including the Bank of Baroda, the voices of criticisms were getting sharper. Apart from this, rumors of charging of Jan Dhan accounts also started flying. However, banks have issued an explanation for not charging the Jan Dhan account. The Finance Ministry has also clarified the situation in this regard on Tuesday.
The changes that Bank of Baroda implemented from 1 November 2020 were related to current account, overdraft account, cash credit account, cash handling charges in savings account, number of free cash deposits per month and withdrawal.
What changes were implemented
Regarding cash handling charges, the bank had said that the cash handling charge for the current account / overdraft / cash credit / other accounts in the base and local non-base branches from November 1, per 1000 on depositing more than Rs 1 lakh cash per account 1 rupee will be on the rupee. This charge will be minimum 50 rupees and maximum 20000 rupees.
At the same time, the number of free cash deposits in Savings Bank Account and withdrawal from Savings Account, Current Account, Overdraft, Cash Credit Account was reduced from 5 to 3 per month. After the end of these free transaction limits, there was no change in the charge for the transactions to be done. Apart from this, the bank also made some changes in the rules related to chequebooks.
But now Bank of Baroda has withdrawn all these rules implemented from 1 November and now again has applied the old number of free cash deposits and withdrawals. Changed rules for chequebook are also no longer applicable.
Jan Dhan, no charge on BSBD account
The bank has once again clarified that there is no service charge on Basic Savings Bank Deposit (BSBD) / Financial Inclusion Accounts. In the tweets made on November 2, the bank had said that the bank has not imposed any new charges and the charges are not applicable on the open account under the Pradhan Mantri Jan Dhan Yojana. Apart from this, the charges for senior citizens are less than the charges applicable for other accounts. The bank also said that there has been no change in the service charge applicable for loan processing from 1 July 2020. There is no processing fee on agricultural loans up to Rs 3 lakh. Apart from this, the processing charge of retail / MSME portfolio has also not been increased. Discount is applicable till 31 March 2021 on home and auto loans.