Kumari Palany & Co

Increase in the rates of penalty from Aug 1st in banks

Posted on: 17/Jul/2020 11:38:41 AM
The banks across the country have decided to revise and increase the penalty charge for not maintaining a minimum balance and the charges for making many transactions from 1 Aug. Every account holder ought to maintain a minimum balance in their account. This amount has been decided based on rural and urban criteria. Though the bank charges for the violation of minimum balance, there are certain basic financial institutions that have relaxed this norm.

Bank of Maharashtra, Kotak Mahindra Bank, and RPS bank have decided to increase the minimum balance, the penalty for the violation, and charges for the transactions.

Bank of Maharashtra had previously fixed the minimum balance at Rs.1500 which has been increased to Rs.2000 now. The penalty for this violation has been revised to Rs.20 for rural areas and Rs.75 for urban areas. For the current account holders, the minimum balance stands at Rs.5000. Similarly, there are no charges made on the first three transactions on any month. Any transactions after that are chargeable with Rs.100 per extra transaction. Rajiv, managing director of Bank of Maharashtra said that these revisions are made to encourage digital transactions.

Axis bank has decided to charge Rs.25 on ECS transactions which weren�t charged previously. In addition, for more than 1000 transactions with Rs.10, Rs.20, and Rs.500, a fee of Rs.100 is charged to the account holder.

Kotak Mahindra Bank will charge the savings account and salary accounts after the five free transactions with Rs.20 per extra transaction. In addition, Rs.8.50 on balance checking and transactions that withdraw more than four times are charged with Rs.100 based on the account ledger.