Customers are paying more for having debit cards, maintaining low balance in accounts
Data from the Indian Ministry of Finance reveals that costs for maintaining bank accounts and owning debit cards have risen significantly for customers. Public sector banks have seen a nearly 90% increase in debit card maintenance charges over the last five years.
Why it matters
Rising banking costs impact financial inclusion and the daily expenses of the average consumer in India.
Having a bank account in India and owning a debit card are becoming increasingly expensive for customers, data presented by the government to Parliament shows.
Analysis by The Hindu of the data presented by the Ministry of Finance to the Rajya Sabha, along with separate data held by the Reserve Bank of India (RBI), shows that the average per-card amount public sector banks (PSBs) are charging for simply owning a debit card grew nearly 90% in the last five years.
Simultaneously, the average per-account amount collected by both PSBs and private banks for low balance increased 21% over the last four years. This increase was, however, due to the charges by private banks.
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