AT A time when financial awareness remains a challenge, more investors find themselves saddled with hidden costs and there seems to be a penalty for any wrong step you take at a bank. What’s worse, most of the charges come without prior notice. The charges range from non-maintenance of quarterly average bank deposit, cash payment penalty on credit cards to cheque book usage, among others.
From April 2007 to March 2008, such complaints increased almost threefold, to a staggering 490 cases, according to the Reserve Bank of India (RBI).
QUARTERLY BALANCE MAINTENANCE
You just can’t afford to be indiscipline while banking today. It carries a financial burden. There’s a big penalty to be paid if you fail to maintain the average quarterly balance. Not only you are liable to pay Rs 500-1,500 as fine, but also chargeable for speaking to a customer care executive. India’s two largest private banks, ICICI Bank & HDFC Bank, ask you to shell out Rs 50 each time you make a call to the customer care office in the event of non-maintenance of quarterly average balance. Even cash transactions at branches in the event of non-maintenance of quarterly average balance are chargeable after a certain number of transactions in a quarter.
CHEQUE FEE
Most banks offer at least one cheque book (consisting of 25-30 payable-at-par cheque leafs) free per quarter with a regular savings account. This is typically an account that requires you to maintain Rs 5,000 as minimum quarterly balance in metro/ urban cities and Rs 2,500 in rural towns. While some private banks impose a Rs 5 per leaf charge on non-maintenance of the minimum balance, others charge Rs 2-5 per cheque leaf in case you require additional cheque leafs in a quarter. Similarly, if you are a no-frills account holder, then there is no free of cost cheque books on offer. It is advisable to go through the terms and conditions carefully before you open an account with a bank. In fact, in HDFC Bank, if you want to check out the status of your cheque, you are liable to pay an extra Rs 25 per instance.
USE BANKING CHANNELS EFFICIENTLY
If you believe that electronic transactions come at a price and are extra cautious over using ATMs, then read this: ICICI bank charges Rs 50 per transaction if you do cash transaction at your base branch more than 12 per quarter. In fact, Standard Chartered Bank has only the first four transactions on any channel (internet banking, phone banking, ATM and branches) per month as free. Subsequently, every transaction on any platform incurs a whopping Rs 75 per transaction. Most banks allow only a limited number of free cash transactions per quarter. Further, there’s an additional cost incurred, if you are banking at a non-base branch.
CASH PAYMENT PENALTY
If you are one of those lazy people who leaves your credit card bill payments for the last day, then better pull up your socks. A majority of the banks now levy a penalty of Rs 100 if you make your credit card payments in cash. If you wish to avoid being in such a situation again, either pay by cheque at least four days before the due date or make online payment.
STANDING INSTRUCTION FEE
There’s a cost involved at every juncture while banking today. The so called personalised services comes at a price. The standing instruction facility may help you a great deal in escaping late payment penalties, but it comes at a price. Be ready to spend between Rs 50 and Rs 150 per instruction. And in case you wish to change any directives, there is an additional charge of Rs 25-75, depending on the bank.
COUNT YOUR DOCUMENTS
Unlike most nationalised banks, private banks charge Rs 50-250 for documents such as balance certificate, interest certificate, address confirmation, signature attestation, photo attestation and others.
NEGLIGENCE IS CHARGEABLE
For careless people, there’s no place in today’s modern-day banking. There’s a penalty charge even for recklessness. Private banks now charge a fine of Rs 100 if you deposit cash in the cheque drop box. If the deposit amount is over Rs 500, the punishment is Rs 300. And if you repeat instances of cash deposits via cheque drop box, you attract an additional charge of Rs 500. The morale of the story is that next time you visit your bank — do remember to keep your eyes and ears open.
From April 2007 to March 2008, such complaints increased almost threefold, to a staggering 490 cases, according to the Reserve Bank of India (RBI).
QUARTERLY BALANCE MAINTENANCE
You just can’t afford to be indiscipline while banking today. It carries a financial burden. There’s a big penalty to be paid if you fail to maintain the average quarterly balance. Not only you are liable to pay Rs 500-1,500 as fine, but also chargeable for speaking to a customer care executive. India’s two largest private banks, ICICI Bank & HDFC Bank, ask you to shell out Rs 50 each time you make a call to the customer care office in the event of non-maintenance of quarterly average balance. Even cash transactions at branches in the event of non-maintenance of quarterly average balance are chargeable after a certain number of transactions in a quarter.
CHEQUE FEE
Most banks offer at least one cheque book (consisting of 25-30 payable-at-par cheque leafs) free per quarter with a regular savings account. This is typically an account that requires you to maintain Rs 5,000 as minimum quarterly balance in metro/ urban cities and Rs 2,500 in rural towns. While some private banks impose a Rs 5 per leaf charge on non-maintenance of the minimum balance, others charge Rs 2-5 per cheque leaf in case you require additional cheque leafs in a quarter. Similarly, if you are a no-frills account holder, then there is no free of cost cheque books on offer. It is advisable to go through the terms and conditions carefully before you open an account with a bank. In fact, in HDFC Bank, if you want to check out the status of your cheque, you are liable to pay an extra Rs 25 per instance.
USE BANKING CHANNELS EFFICIENTLY
If you believe that electronic transactions come at a price and are extra cautious over using ATMs, then read this: ICICI bank charges Rs 50 per transaction if you do cash transaction at your base branch more than 12 per quarter. In fact, Standard Chartered Bank has only the first four transactions on any channel (internet banking, phone banking, ATM and branches) per month as free. Subsequently, every transaction on any platform incurs a whopping Rs 75 per transaction. Most banks allow only a limited number of free cash transactions per quarter. Further, there’s an additional cost incurred, if you are banking at a non-base branch.
CASH PAYMENT PENALTY
If you are one of those lazy people who leaves your credit card bill payments for the last day, then better pull up your socks. A majority of the banks now levy a penalty of Rs 100 if you make your credit card payments in cash. If you wish to avoid being in such a situation again, either pay by cheque at least four days before the due date or make online payment.
STANDING INSTRUCTION FEE
There’s a cost involved at every juncture while banking today. The so called personalised services comes at a price. The standing instruction facility may help you a great deal in escaping late payment penalties, but it comes at a price. Be ready to spend between Rs 50 and Rs 150 per instruction. And in case you wish to change any directives, there is an additional charge of Rs 25-75, depending on the bank.
COUNT YOUR DOCUMENTS
Unlike most nationalised banks, private banks charge Rs 50-250 for documents such as balance certificate, interest certificate, address confirmation, signature attestation, photo attestation and others.
NEGLIGENCE IS CHARGEABLE
For careless people, there’s no place in today’s modern-day banking. There’s a penalty charge even for recklessness. Private banks now charge a fine of Rs 100 if you deposit cash in the cheque drop box. If the deposit amount is over Rs 500, the punishment is Rs 300. And if you repeat instances of cash deposits via cheque drop box, you attract an additional charge of Rs 500. The morale of the story is that next time you visit your bank — do remember to keep your eyes and ears open.
