Bank service charges under higher security

By agencies   |   Thursday, 27 April 2006, 07:00 Hrs
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MUMBAI: The Reserve Bank of India announced that, all service charges levied by banks would come under increased scrutiny. A new working group, which is in the process of being formed, will specifically examine the ATM interchange fee, the processing fee charged by banks for various loan products and charges for the non-maintenance of quarterly balance. RBI officials say though the committee will not prescribe any benchmark, banks will have to not just justify the charges that they levy, but also make it fully transparent. With this initiative, we hope that banks evolve a reasonable service charge on various banking products and display, and also update it on their website, branches and offices. Senior RBI official said today “The details of various service charges will have to be put up in a format which is approved by the RBI and would also be placed on the RBI website. In his policy statement on April 18, RBI governor YV Reddy had said the central bank had received several customer complaints about unreasonable and non-transparent service charges. He had also spelt out the formation of the working group in his policy statement. The working group will comprise a nominee of the Indian Banks Association (IBA) and representatives of customers. IBA officials said so far they have not received any communication from RBI on the scope of what the committee will examine