What are the various charges banks collect from customers | Explained
Public sector banks in India have significantly increased charges for services like debit card maintenance and ATM usage. Data from the Ministry of Finance shows a sharp rise in revenue collected from these fees over the last few years.
Why it matters
The rising cost of basic banking services impacts the financial burden on retail customers.
The story so far: Both public sector and private banks have been charging customers fees for various services they provide, such as the use of debit cards, ATM facilities, and account maintenance charges. While some of these charges have now been withdrawn, especially by public sector banks (PSBs), some others have seen an increase over the years.
The Ministry of Finance, in a reply to a question in the Rajya Sabha, had provided Parliament data on the various charges public sector banks collect from customers. The largest of these is the ‘debit card charge’. Debit card charges are “annual maintenance charges for debit cards”.
These charges come in the form of annual maintenance charges and are meant to help banks pay for the maintenance and upkeep of debit card services and related infrastructure. This charge helps cover the cost of card issuance, management, replacements, backend infrastructure, and customer support.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in