RBI has recently hiked rates on savings accounts to make it 4 per cent and is desirous of deregulating them, which would push up the rates further. Thus, the pressure on net interest margins is likely to further increase if the RBI deregulates savings account deposit rates.
HDFC Bank Managing Director, Aditya Puri , said, "The transaction charges will go up for the consumers if the rates on savings bank accounts keep on going up... The banks also have to survive."
As the banks has spend too much on technology and have to cover their cost, they could charge for non-maintenance of minimum balance, raising the minimum balance requirement, an increase in cheque issue charges and a limit on the number of free transactions. The banks also have to allocate money toward mandatory requirements such as financial inclusion and opening branches in rural areas, among others.
Central Bank of India Chairman and Managing Director S Sridhar said, "Levying of transaction charges is a trade-off." “If you go to any foreign country, banking is so costly... Banking is expensive. Try getting a cheque book in a foreign bank," he added.