A service fee is an amount charged to individuals for accessing different tasks, such as withdrawing cash at an ATM of another bank. A monthly maintenance fee is charged by the bank when you open a savings account with them. At the end of each month, this amount is deducted from the account. Similarly, service charges are often charged while accessing a different bank's ATM or initiating a fund transfer. Now let's take a glance at the charges that top banks charge for different services.
Charges for cash transactions
In most banks, a savings account holder is limited to conduct some free transactions, exceeding which a fee is imposed by the banks. If a customer exceeds the cap of four free transactions or cash withdrawals of up to Rs 2 lakh in a month, Axis Bank imposes charges on him or her. After May 1, Axis Bank customers who withdraw money from their savings account over the free cap must pay 2.5 per cent of the amount withdrawn. Saving bank customers in metro cities will be charged Rs 125 per transaction, whereas senior citizens, pensioners, and saving bank account customers in rural/semi-urban areas will be charged Rs 100 per transaction by Bank of Baroda after the limit of three transactions per month is surpassed. Account-holders of the Pradhan Mantri Jan Dhan Yojana (PMJDY) are excluded from these fees. Service charges for Basic Savings Bank Deposit (BSBD) account holders have been revised by the country's largest lender, State Bank of India (SBI). SBI stated on its website that the new fees would refer to ATM withdrawals, chequebook, transfer, and other non-financial transactions. The revised service charges will be enforced on July 1, 2021. The revised fee per cash withdrawal transaction at a Branch Channel/ATM is Rs 15 plus GST. Charges will be recovered after the first four free cash withdrawal transactions, according to the SBI website (including at ATM and branch). At all SBI and non-SBI ATMs, the service fee above the ceiling would be Rs 15 plus GST.
Cash withdrawal charges at ATM
Regular savings bank account holders at the State Bank of India (SBI) and ICICI Bank are allowed for eight free transactions in metro cities, including five from home-branch ATMs and three from non-home branch ATMs. Banks charge from Rs 20 to Rs 50 per withdrawal after the specified cap has been reached. At HDFC Bank, however, there is no service fee for cash withdrawals at home branches. However, non-home branches allow free cash withdrawals up to Rs.1,00,000/- per day, after which charges apply at Rs.2/1000, with a minimum of Rs.50/- per transaction; third-party cash withdrawals are limited to Rs.50,000/- per transaction. Cash withdrawals above the free cap are currently charged at Rs 5 per Rs 1,000 or Rs 150, whichever is higher. Cash withdrawals above the free limit will be charged by Axis Bank at a rate of Rs 10 per Rs 1,000 or Rs 150, whichever is higher, starting from May 1, 2021.
Charges for failed ATM transaction
Despite the fact that the Reserve Bank of India (RBI) has announced that banks cannot charge customers for failed transactions, banks charge a fee for a failed ATM transaction due to insufficient balance in the customer's account. For each unsuccessful transaction, SBI charges a fee of Rs 20 plus GST. For each failed transaction, HDFC Bank, ICICI Bank, Kotak Mahindra, and Yes Bank charges a fee of Rs 25.
If a customer's account balance slips below the specified amount, the bank imposes a fee. Customers in ICICI Bank's metro and urban branches must maintain a minimum balance of Rs 10,000, whereas customers in semi-urban and rural branches must maintain a minimum balance of Rs 5,000. In Metro/Urban/Semi-Urban/Rural areas, if a customer fails to maintain the necessary minimum balance, the bank will charge a fee of Rs100 + 5% of the deficit in the specified minimum balance. The average monthly balance (AMB) requirement for HDFC Bank's urban branch accounts is Rs 10,000, while the criteria for semi-urban branch accounts is Rs 5,000. The charges are Rs 600 a month if the AMB is less than Rs 2,500 in an urban branch account, and Rs 150 if the AMB is less than Rs 10,000 but more than Rs 7,500. On the other hand, a Monthly Service Fee (MSF) of Rs.10 per Rs.100 deficit in required balance or Rs.600, whichever is lower, with a minimum charge of Rs.150 is charged by Axis Bank.
Customers are alerted by their banks of transactions that occur from their accounts. According to the Axis Bank website, the fee for certain value-added services (VAS) notifications is currently charged at Rs 5 per month (imposed quarterly at Rs 15 per quarter) on a subscription basis (s). This will be in effect until June 30, 2021. Starting July 1, 2021, a 25-paise-per-SMS SMS alert fee will be charged depending on actual usage/SMS sent to the individual, with a monthly limit of Rs 25. Charges are not applied on promotional SMS sent by the bank or OTP alerts. SBI had waived SMS service charges in August of last year. Customers who register for InstaAlert service with 'SMS' as the delivery platform will be charged Rs. 15 per quarter in the case of salary or savings accounts, and Rs. 25 per quarter in the case of current accounts at HDFC Bank. As of now, all ICICI Bank Savings Account customers will be charged Rs. 15 per quarter to use the Alerts facility via SMS.
Debit card charges in case of replacement
If you misplace the debit card, your bank will charge you a fee of Rs 50-500 to replace it. SBI, for example, currently charges Rs 300+GST for Debit Card Replacement. HDFC Bank and Axis Bank, on the other hand, charge a fee of Rs 200 for the same.
Customers are charged by banks for the issuance of documents also. For duplicate physical passbooks and account statements, banks charge Rs 50-150. For example, SBI charges a fee of Rs 150 for signature verification. Banks issue one annual account statement per financial year to their customers. Customers who request a duplicate account statement, on the other hand, maybe charged between Rs 50 and Rs 100. Each duplicate statement costs Rs 100 at ICICI Bank. In particular, HDFC Bank and Axis Bank also charge Rs. 100 per statement.
Cheque clearance charges
For cheques worth more than Rs 1 lakh, the RBI has set a maximum fee of Rs 150 per cheque. Cheques with an amount of up to Rs 1 lakh are free of charge. For savings bank account holders, SBI will only provide 10 free cheque leaves every financial year. Additional 10-leaf cheque books will be issued at Rs 40 plus GST after that. The bank will charge you Rs 75 plus GST for 25 leaf cheque books. No such charges have been levied on senior citizens. Whereas for outstation cheque collection -through non-ICICI bank branch locations, ICICI Bank charges Rs. 200 per instrument for an amount of above Rs. 1 lakh.