No service charge on Basic Savings Bank accounts

Union Government today said that no service charge is applicable on 60 crore Basic Savings Bank Deposit accounts, including Jan Dhan accounts. Finance Ministry said, there have been several media reports alluding to steep increase in service charges by certain Public Sector Banks.

It said, charges have not been increased. The Ministry said, Bank of Baroda had made certain changes with effect from 1st November this year, with regard to the number of free cash deposits and withdrawals per month.

The number of free cash deposits and withdrawals has been reduced from five each per month to three each per month, with no change in the charges for transactions in excess of these free transactions. As per RBI guidelines, all banks, including Public Sector Banks, are permitted to levy charges for their services in a fair, transparent and non-discriminatory manner.