Bank of India has withdrawn its plan to levy charges for services which are currently not charged for.
Following publication of our story earlier this morning, Reuters has carried a report saying that the Bank of India does not have any plan of levying charges on those services which are available free of charges currently.
The report quotes sources as saying, “There were reports in some segments of Social media, Print & Visual media that all free services of PSBs including Bank of India will be ceased from January 20, 2018. It is hereby clarified that Bank of India does not have any plan of levying charges on those services which are available free of charges currently.”
Subsequently, the bank has removed the link of the document stating the proposed increase in charges from their website. However, our screen shots below show that earlier there was a plan to levy charges on passbook updation and other services.
This is what we had published earlier:
Updating your passbook at the branch may cost you money. Bank of India has placed a notice of ‘Proposed charges’ from 20.1.2018 on its website which includes among others, a Rs 10 charge per updation of passbooks. It may be mentioned that charges for passbook updation are unheard of in recent times.
As per the notice, several bank services which were hitherto free are proposed to be made chargeable. These services include updation of passbook for which Rs 10 is to be charged per updation which would be auto debited from the account holder’s account. The other services that will cost you January 20th onwards include – Cash withdrawals, cash deposit, getting a balance statement, getting the KYC updated, signature and photo verification, cheque deposit, getting an interest certificate, requesting unblocking of internet or mobile password. However, as per the proposals, these two services continue to be free – stop payment and standing instruction request.
The notice of proposed charges is available on its website and can be seen
. It carries the name “Proposed intersol activities and charges’ to be effective from Jan 20, 2018.
Screen shots taken of the notice on the bank website on 12.1.2018 at 13.33 hours are appended below.
Interestingly, the circular says that, “The proposed charges will be over and above the service charges as applicable at the base branch”. The implementation of the proposed charges may bring in several charges under the cost net that are currently free.
It is a known fact that banks discriminate account holders in terms of ”home’ branch’ and ”non-home’ branch when it comes to pricing their services.
The RBI had in an earlier circular has remarked that “With the introduction of Core Banking Solution (CBS), it is expected that customers of banks would be treated uniformly at any sales or service delivery point. It is, however, observed that some banks are discriminating against their own customers on the basis of one branch being designated as the ‘home’ or ‘base’ branch where charges are not levied for products / services and other branches of the same bank being referred to as ‘non-home’ branches where charges are levied for the same products / services.
The RBI in its July 2013 circular goes on to say – “If a particular service is provided free at home branch the same should be available free at non home branches also. There should be no discrimination as regards intersol charges between similar transactions done by customers at home branch and those done at non-home branches.”
As per recent news agency reports, Indian Banks Association has scotched reports circulating on social media that banks are planning to discontinue all free services from January 20. The industry body, however, said in a statement that banks will continue to review their transaction charges based on operational and commercial viabilities.
“There are reports in some segments of social media that all free services by banks will be ceased from this January 20,” the statement said. “There is neither any move by banks for such a blanket removal of free services nor such a thing is being contemplated… it is clarified that these are baseless and false information,” it said.
The Bankers’ body Indian Banks Association had issued a statement, “Banks are looking at commercial and operational costs and would constantly examine and revise charges as the case may be.” The association also warned the public not to get misled by such messages as “such news is pure rumours and there is no fresh instruction/guidelines on this by the Reserve Bank”, it added.