Big lenders have announced a set of changes in relation to ATM charges as well as for cheque usage. Also few days back, RBI has allowed banks to increase charges on ATM cash withdrawal beyond the free limit. Though the hike is just by Rs. 1 i.e. will be Rs. 21 from the next year, it can mean a huge levy for customers, as it shall be charged for every transaction beyond the free limit:
So, here are few points to note considering which bank customers can avoid heavy charges:
1. Premium account allow all such transactions for free:
There are bank accounts which generally require maintenance of AMB of Rs. 20000 and upwards and such accounts generally offer unlimited free transactions. So, if your pocket allows switching to a higher or premium category bank account, will help you get rid of all such charges. Say for instance, HDFC Bank's Savings Max account offers free transactions at all ATMs clubbed with other benefits.
2. For merchant and other payment transactions:
If payments are to be made to some third parties instead of withdrawing funds at ATM or bank branch, you can directly remit the concerned beneficiary via your account through the various modes. Of late these modes of payment are allowed even on non-working banking days and entail no cost even. Interoperability of funds from one wallet to another and also to bank account shall also be made possible in due course.
3. Minimum balance requirement:
While salary account don't come with such a requirement, for regular savings account, AMB requirement is in general Rs. 10000. For non-maintenance of the minimum stipulated amount you can be charged anyway between Rs. 200 - Rs. 500 plus 18 percent GST. So, try and always maintain this amount. Also, if this seems to be too much on you, get on to close all the savings bank account which you continue to maintain unnecessarily.
4. Cheque book charges:
Now as the recent SBI rule suggest that only usage of up to cheque leaflets of the bank shall be free and beyond that there will be charges levied. You can avoid such charges by paying through the digital mode wherever possible. This is also true of the demand draft that also entails the cost depending on the amount of the DD.
5. Too many cash transactions also result in charges:
Recently in a bid to push digital economy and hence transactions, too many cash transactions or cash transaction in an amount more than what is prescribed is also chargeable. Generally 4-5 cash transactions i.e. deposit and withdrawals are free, post which there are charges from Rs. 150-200 per transaction.
6. Debit cards are also chargeable:
While debit cards are misunderstood as similar to being ATM cards, the two are different as the former also allows debit transactions. Debit cards generally come with annual maintenance charge also. Annual fee may be in the range of Rs. 150-Rs. 200 depending on the type of debit card. For HNIs these charges are not there as they are offered privileged set of services.
7. SMS alerts cost :
While this is also an additional burden of Rs. 15-20 per quarter, this is a must opt for service as you are notified of all the transactions are notified to the customer's registered mobile number.
8. For various mandates and debits if not honoured a steep penalty is chargeable:
In a case if your various mandates get dishonoured then a huge penalty shall be charged to you that can be anyway between Rs. 300- Rs. 350. Also, this is true of the bank cheque when it is not honoured.
So, if you inculcate a discipline in your various financial dealings then you can greatly reduce as well as can avoid such bank charges.