Wednesday, December 19, 2018

Transaction Charges by Banks | Both ATM and Cheque Transactions Charge

Transaction Charges by Banks | Both ATM and Cheque Transactions Charge

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 781
ANSWERED ON: 14.12.2018

Transaction Charges by Banks

NEELAM SONKER

Will the Minister of FINANCE be pleased to state:-


(a) whether the banks charge a fee for every transaction due to which bank deposits are declining and if so, the details thereof;

(b) whether banks charge fee for both Automated Teller Machine and cheque transactions due to which small saving account holders are closing their bank accounts; and

c) the number of account holders in the Public Sector Banks (PSBs) from the year 2015 till February 2018, year-wise?

ANSWER
The Minister of State in the Ministry of Finance

(a) As per guidelines issued by RBI, basic banking services like deposit, withdrawal of cash at bank branch as well as ATMs, receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments, etc. are provided without any charges for Basic Savings Bank Deposit (BSBD) accounts, including accounts opened under Pradhan Mantri Jan DhanYojana (PMJDY).

For accounts other than BSBD accounts, as per Reserve Bank of India (RBI)’s Master Circular on “Customer Service in Banks” dated July 1, 2015, banks are permitted to fix service charges on various services rendered by them, as per their Board approved policy, while ensuring that the charges are reasonable and not out of line with the average cost of providing these services. Further, banks have been advised to identify basic services and the principles to be adopted/ followed by them for ensuring reasonableness in fixing such charges. Banks are also advised to take steps to ensure that customers are made aware of the service charges upfront and changes in the service charges are implemented only with the prior notice to the customers.

The deposits in Savings accounts in Scheduled Commercial Banks during financial year 2013-14 to 2016-17 are provided below:

Deposits in Saving accounts in Scheduled Commercial Banks(in Rs. crore)

As on 31.3.2014 21,04,350
As on 31.3.2015 23,46,659
As on 31.3.2016 26,68,439
As on 31.3.2017 34,31,556

(b) As per guidelines issued by RBI, BSBD account holders including small account holders are eligible for deposit, withdrawal of cash at bank branch as well as ATMs, receipt or credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments free of charge. As per the guidelines, BSBD account holders are allowed a maximum of four withdrawals in a month, including ATM withdrawals.

As per frequently asked questions (FAQ) issued by RBI, BSBD accounts do not envisage cheque book facility in the minimum facilities provided to BSBD account holders.

(c) As per RBI, the total number of Savings accounts in the Public Sector Banks (PSBs) during financial year 2013-14 to 2016-17 are provided below:

The number of savings accounts in PSBs(in Rs. crore)

As on 31.3.2014 73.48
As on 31.3.2015 88.39
As on 31.3.2016 101.37
As on 31.3.2017 112.88

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