RBI regulations for savings bank accounts service charges

[FinoGuy]

Hi TFians! Does RBI has any guidelines for banks to follow for savings bank account service charges?
Nowadays all banks are updating their service charges with increased charges & many are not intimating(via email) customers about these new increased charges.
Can banks just put new service charges on their website and let customers check themselves or do they need to communicate the new updated service charges to customers? What does the RBI guidelines say on this?

Ps: I recently noticed hefty service charge been deducted from canara & IOB account, upon enquiry, found out that debit card amc have been doubled recently & mab non maintenance increased to 4x.!

 

[Quantum]

Hi TFians! Does RBI has any guidelines for banks to follow for savings bank account service charges?

Yes, it has. https://www.rbi.org.in/commonman/English/Scripts/CustomerServiceGuidelines.aspx#disp

Nowadays all banks are updating their service charges with increased charges & many are not intimating(via email) customers about these new increased charges.
Can banks just put new service charges on their website and let customers check themselves or do they need to communicate the new updated service charges to customers? What does the RBI guidelines say on this?

As per the above guideline:
Banks may be required to inform the customers in an appropriate manner recovery of service charges. Banks may also be required to inform customers in all cases when a transaction initiated by the bank itself results in or likely to lead to a shortfall in the minimum balance required to be maintained.

Ps: I recently noticed hefty service charge been deducted from canara & IOB account, upon enquiry, found out that debit card amc have been doubled recently & mab non maintenance increased to 4x.!

Did you get SMS/emails regarding these from the banks?

As per the above guidelines, the banks should have notified you via SMS/email to warn you about the non-maintenance of MAB.
They should have also notified you about the 4X charges that would be levied if you fail to comply.

As the above guidelines talk about ensuring reasonableness of bank charges, you could raise a concern if you, as a customer, feel that the charges are not reasonable and you were not notified before the banks acted upon it.

 

[FinoGuy]

Yes, it has. https://www.rbi.org.in/commonman/English/Scripts/CustomerServiceGuidelines.aspx#disp

As per the above guideline:
Banks may be required to inform the customers in an appropriate manner recovery of service charges. Banks may also be required to inform customers in all cases when a transaction initiated by the bank itself results in or likely to lead to a shortfall in the minimum balance required to be maintained.

Did you get SMS/emails regarding these from the banks?

As per the above guidelines, the banks should have notified you via SMS/email to warn you about the non-maintenance of MAB.
They should have also notified you about the 4X charges that would be levied if you fail to comply.

As the above guidelines talk about ensuring reasonableness of bank charges, you could raise a concern if you, as a customer, feel that the charges are not reasonable and you were not notified before the banks acted upon it.

Thank you! I'll make a note of it.

Did you get SMS/emails regarding these from the banks?

No.. No email /sms direct deduct from amount 2 months ago.

Banks may be required to inform the customers

Does this mean banks can choose to inform customers or not as per their mood?

 

[Mr. BeanMr. Bean is verified member.]

Ps: I recently noticed hefty service charge been deducted from canara & IOB account, upon enquiry, found out that debit card amc have been doubled recently & mab non maintenance increased to 4x.!

Thanks for the heads-up. I have a Canara Bank account and I didn't know when they increased the min balance from 1k to 2k. Anyway, I have been maintaining 2k so far. However, due to cash crunch, I was about to maintain less going forward. Your post saved some hefty charges. 🙏
🙏🙏

 

[FinoGuy]

Thanks for the heads-up. I have a Canara Bank account and I didn't know when they increased the min balance from 1k to 2k. Anyway, I have been maintaining 2k so far. However, due to cash crunch, I was about to maintain less going forward. Your post saved some hefty charges. 🙏
🙏🙏

Happy to hear ... Canara never sends any communication sms/email, they deduct the charges rightaway!