Service charges in public sector banks are not going to increase in the near future. Banks have taken this decision in view of the COVID 19 situation. At the same time, Bank of Baroda has withdrawn the changes implemented from 1 November. This information has come from a statement of the Finance Ministry. In fact, there are many news reports about the increase in service charge by some public sector banks. In some of these reports, Jan Dhan accounts are also being claimed for the charge. In order to remove any ambiguity in this matter, the Finance Ministry issued a statement on Tuesday. In this statement, the ministry has told about the fixed service charge for different types of accounts.
As per RBI guidelines, all banks, including PSBs, are permitted to levy charges for their services in a fair, transparent & non-discriminatory manner, other PSBs have also intimated that they do not propose to raise bank charges in the near future in view of COVID pandemic.(5/5)
— Ministry of Finance (@FinMinIndia) November 3, 2020
BSBD account including Jandhan
The Finance Ministry says that there is no service charge on 60.04 crore BSBD accounts including 41.13 crore Jan Dhan accounts. Since these accounts have been opened by the poor and sections away from banking facilities, hence the RBI has fixed free service for them.
Regular Savings Account, Current Account, Overdraft Account
According to the Finance Ministry, the charges have not been increased in the case of these accounts. However, Bank of Baroda made some changes from 1 November 2020, which are linked to the number of withdrawals and withdrawals per month. The number of free cash deposits and withdrawals has been reduced from 5 to 3 per month. There is no change in the charge for the transactions to be done after the end of these free transaction limits.
Bank of Baroda’s new decision
The ministry has also said in the statement that Bank of Baroda has informed that keeping in view the current COVID situation, it has decided to withdraw the changes implemented from 1 November. No other public sector banks have recently increased service charges.
Banks are not currently increasing the charge
The Finance Ministry further said that according to the RBI guidelines, all banks, including public sector banks, are allowed to charge for their services in a fair, transparent and non-discriminatory manner based on their cost. But all the public sector banks have reported that they do not propose to increase the bank charge in the near future in view of the COVID 19 epidemic.