Banks to levy additional charges on transactions from November 1, 2020

Customers in some banks will now have to start paying fees for deposit and withdrawal of money.

As per reports, Bank of Baroda will start charging its customers for transactions beyond the prescribed limits from November 1.

Names of other banks like Bank of India, PNB, Axis Bank and Central Bank are also emerging in reports, but they are yet to take a final call on the matter.

As per reports, some of these transaction charges will kick in from November 1.

It is being said that withdrawals three times in a month will be free but after that a withdrawal transaction charge will be levied at a flat fee of Rs 150.

Similarly, deposits three times in a month will be free but thereafter a charge of Rs 40 will be levied on each transaction.

For CC, present and overdraft accounts

Day deposit up to one lakh – free

If there’s a couple of lakh – one rupee cost on minimal one thousand rupees (minimal 50 rupees and most 20 thousand rupees)

Withdrawing money thrice in a month – No cost

From 4th time – Rs. 150 withdrawal every

For Savings Account Customers

Deposit up to thrice – free

Will have to pay from 2nd time – Rs 40 every time

3 occasions money withdrawal in a month – no price

The fourth time, and past withdrawal – 100 rupees every transaction

No exemption for senior residents. They even have to pay a price.

Here are some common bank charges that we all should know about.

Average balance requirement: 

It is the minimum amount that is to be maintained in the account. 

Banks calculate it by adding each daily closing account balance and dividing it by the number of days in the period. Earlier, all banks used to take the quarterly figure. 

Now, many have moved to the monthly system. There are also accounts with no minimum balance requirement. 

Check out with your bank how much balance you need to maintain. If the figure falls below the level mandated for the account, banks usually charge a penalty. 

For example, in a State Bank of India, or SBI, account, you have to maintain the minimum balance on a quarterly basis. 

ICICI Bank and HDFC Bank do the calculation monthly. Moreover, while SBI charges you per quarter, the other two imopose a fine for every month that the minimum balance is not maintained. Many customers are not aware about how the average balance is calculated. 

Duplicate statements:  

Banks charge you every time you apply for a duplicate account statement. 

The good news is that you pay less if you apply through net banking, phone banking or ATM. The usual fee of Rs 100 can be cut to half by going for the non-branch options.

Dishonoured cheque

There are cheques drawn on banks and there are cheques deposited with banks. In both cases you are charged for failed transactions. Usually, there are different charges for outstation and local cheques. 

Consider this. 

For cheques deposited with ICICI bank, it costs Rs100 for local cheques and Rs150 for outstation cheques.

Failed ECS transaction Banks charge you every time an ECS transaction is rejected. 

Some banks have a flat penalty for all failed ECS transactions. Some charge more for second rejection in the same month. 

For example, HDFC Bank charges Rs 350 for every rejection in a quarter. The penalty for subsequent rejections is Rs 750. Cash transactions You cannot make unlimited cash deposits and withdrawals for free either at home or non-home branches. 

For example, ICICI Bank allows four free cash transactions per month for branches in the same city. Thereafter, it charges Rs 90 per transaction.

There can also be a cap on transaction value.In case of HDFC Bank, there is no cap on the amount that can be transacted in the home branch.

At non-home branches, customers are charged Rs 5 per Rs 1,000 for amounts above Rs 49,999. 

At non-home ATMs: The rates are set by the Reserve Bank of India or RBI. Present rules mandate at least five free transactions per month at other banks' ATMs. After this, banks charges you per withdrawal. The limit has however been revised for six metropolitan cities.

From November 1, 2020 onwards, there will be a limit of three transactions per month from ATM of other banks and five from the same bank.

Debit card fees: 

You have to pay Rs 100-500 a year for your debit card. 

If the card is lost or damaged, the bank will charge you for issuing a new one. 

NEFT and RTGS National Electronic Funds Transfer, or NEFT, is a payment system for one-to-one fund transfer. 

The processing charges are mandated by the RBI. 

For transactions up to Rs 10,000, there is a standard charge of Rs 2.50. 

Between Rs 10,001 and Rs 1 lakh, it is Rs 5. Between Rs 1 and Rs 2 lakh, it is Rs 15, while above Rs 2 lakh it is Rs 25. 

Real Time Gross Settlement, or RTGS, transfers funds in real time on an order-by-order basis. 

For transferring Rs 2-5 lakh, the fee is Rs 25 and for above Rs 5 lakh, it is Rs 50.

International transactions

International transactions cost 3-4% more because of the currency conversion charge. "If you make payments abroad through debit or credit card, a charge of 4% is added to the exchange rate. Surcharge at petrol pumps Next time you swipe your card at a petrol pump, note the amount of surcharge that you pay. SBI, for example, charges 0.75% for purchases up to Rs 2,000 and 1% for higher value transactions. Similarly, the ICICI HPCL debit card does not charge any fee for transactions above Rs 400. For non-HPCL outlets, there is a surcharge of 2.5% of the purchase value or Rs 10, whichever is higher.

Some cards also offer you a cashback in partnership with oil marketing companies. SMS service Banks also charge you for the balance updates they send on your phone. For example, ICICI Bank charges Rs 15 per quarter for the service. The list is not exhaustive. 

There is a plethora of other charges for things such as signature verification and demand drafts. 

Since the list of charges is readily available on websites of banks, all of us should take a look at it to know what all we pay for.