Banks Have The Right To Levy Charges

BCSBI chairman AC Mahajan speaks on banks’ performance during demonetisation, hike in service charges and range of other issues in an interview with Preeti Kulkarni

- Preeti Kulkarni

Service standards of banks have come under scrutiny in the aftermath of demonetisation. How do you view the scenario?

I believe banks did a wonderful job during demonetisation. The entire population of the country was interacting with banks in some way or the other. They had only one day to prepare and were under huge pressure; they had to come in early and leave late, besides handling the agitated customers at branches. I think majority of customers were satisfied with the way banks handled the situation. The government has also acknowledged their efforts. Barring some exceptions, banks did a good job. If say 100 out of 10 lakh bank employees have done something wrong, it does not mean that the entire banking class is at fault.

Now, some banks have raised cash transaction and non-maintenance charges…

Banks have the right to introduce charges. The only requirement is that they should be reasonable and notified to customers well in time. Customers also have the right to decide whether to bear the charges or move on to other banks. We had immediately taken up the matter informally with all banks and they have given their response. We believe that banks have followed the procedure that is required to be followed. However, let me put a rider too—if they do not and customers feel that 30-day notice was not given to them in a transparent manner, they have a right to approach bank for a refund of the charges. If it is still not sorted out, they can go to banking ombudsman.