Banking to get more Expensive from April 1, 2015

Earlier I had written about how banks are unethically debiting customer accounts on account of their hidden charges. Come April 1 and some private banks would be increasing their service charges making banking even more expensive.

Non-maintenance of Minimum Average Monthly Balance:

Most private banks have steeply increased the he charges on non-maintenance of minimum average Monthly balance amount from April 1, 2015. Below are some of the changes:

ICICI Bank:

• ICICI bank has increased the penalty from Rs 250 to Rs 350 in case the monthly average balance amount is between Rs 5000 to Rs 10,000 for metro and urban customers.
• In case this amount is below Rs 5,000 you would be charged Rs 450 up from Rs 350 charged earlier.
• Also for semi urban areas this charge has been increased by Rs 50.

In addition to this, ICICI Bank would charge Rs 5 per thousand (minimum Rs 150) for cash deposited at its branches which in a different city than the account of account holder. Until now one cash transaction was free every calendar month. Thankfully first cash deposit through machine would be free.

Also Read: 22 Hidden Charges in Saving Bank Account

HDFC Bank:

• HDFC bank too has increased its charges for non maintenance of minimum average Monthly balance to Rs 150 to 600 depending on the type of account and balance in urban areas.
• For semi-urban areas this charge would vary from Rs 150 to Rs 300. This is hike of up to 70% above the existing charges.

HDFC bank would also charge its customers Rs 75 for additional cheque book request of 25 leaves beyond the first.

Axis Bank:

• Axis bank (Prime Plus Account) would charge Rs 5 per Rs 100 of shortfall in minimum average Monthly balance subject to minimum charge of Rs 350. The existing penalty was Rs 250.

Kotak Mahindra Bank:

• Kotak Mahindra bank has also hiked its charges for non-maintenance of minimum average Monthly balance from Rs 250 – 400 to Rs 300 – 500 depending on the type of account and balance.

New Rules:

RBI (Reserve bank of India) in November 2014 had asked banks to inform customers about non maintenance of minimum average Monthly balance amount and their charges. So banks would now send SMS, email or letter to inform about the same amount and give a grace period for 30 days to meet the balance requirement. In case you still do not deposit required amount bank would levy their charges for both ‘default month’ and ‘notice month’.

Also Read: Highest interest rate on savings account in India

What should you do?

Its expected that banks would increase their charges year on year and also introduce new charges going forward on their saving account customers. As a consumer you can do the following:

• Review and close all the accounts that you do not need
• Check your bank account statement regularly to see if banks have debited amounts you do not understand
• Go through the Fees and Charges page on respective bank’s website. They are mandated by RBI to publish all charges on this page.

And last keep on reading Apnaplan.com to keep your self updated on the matters of Personal Finance 🙂