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'Banks Have The Right To Levy Service Charges'
The Finapolis
|July 2017
With the recent revision in banking service charges by a host of banks, including State Bank of India, HDFC Bank, ICICI Bank, we put some questions to The Banking Codes and Standards Board of India (BCSBI) on how customers are impacted by the host of service charges. Anand Aras, CEO, BCSBI, elaborates to S Vijaykrishnan.
What is the BCSBI’s view on banks revising service charges in recent months? Is it a post-demonetisation phenomenon?
BCSBI is of the view that banks have the right to levy service charges. Service charges are revised periodically by the Banks with the approval of their boards. The only requirement is that they should be reasonable and notified to customers well in time. As per the provisions of the Bank’s Code of Commitment to Customers, any increase in any fee or charge will be notified by the Banks through statements of accounts/ email/SMS alerts/notice board at branches, update on the website one month prior to the revised charges becoming effective.
Do customers really understand the various charges being levied on their bank account and other services?
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