Finance Ministry: PSU banks will not increase charges for deposits and withdrawals in the near future
The Ministry of Finance released an official statement with “the factual position”.
Finance ministry said “No service charge is applicable on the 60.04 crore Basic Savings Bank Deposit accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society, for the free services prescribed by RBI”.
The statement mentions “Regular Savings accounts, Current Accounts, Cash credit accounts & Overdraft accounts: In this regard, while the charges have not been increased, Bank of Baroda had made certain changes w.e.f. 1st November, 2020, with regard to the number of free cash deposits and withdrawals per month. The number of free cash deposits and withdrawals, have been reduced from 5 each per month to 3 each per month, with no change in the charges for transactions in excess of these free transactions. Bank of Baroda has since informed that in the light of the current COVID related situation, they have decided to withdraw the changes. Further, no other PSB has increased such charges recently”. The ministry added that all banks, including PSBs, are permitted to levy charges for their services.
The finance ministry clarified that owing to the ongoing coronavirus situation in the country, the government owned bank has “decided to withdraw the changes”.
Bank of Baroda has confirmed that “All increases in service charges stand withdrawn. This is taking into consideration the prevailing Covid-19 pandemic and its impact on the economy”.