Banks advised to Display Service Charges in their branches/on website - RBI - Reserve Bank of India
55319264
Published on May 16, 2006
Banks advised to Display Service Charges in their branches/on website
RBI/ 2005-06/386 May 16, 2006
The Chairman/Chief Executive Officer/Managing Director, Dear Sir/Madam, Annual Policy Statement for the year 2006-07-Fair Practices Code- Display of Bank Charges Please refer to the paragraph 162 of the Annual Policy Statement for the year 2006-07, a copy of which is enclosed. 2. As per extant instructions, the decision to prescribe service charges is left to the discretion of the Boards of individual banks. Banks would normally be expected, while fixing the service charges, to ensure that charges are reasonable, consistent with the cost of providing these services and that the customers with low value/volume of transactions are not penalized. 3. The Reserve Bank continues to receive representations from the public about the unreasonable and non-transparent service charges being levied by banks indicating that the existing institutional mechanism in this regard is not adequate. In order to ensure transparency in banking services, you are advised to display and update, on your website, the details of various service charges in the enclosed format in Annex I. The formats could be modified depending on products offered but all service charges as indicated in Annex I should be covered. 4. You are also advised to display the charges relating to certain services as at Annex II in your offices/branches. This may also be displayed in the local language. 5. You may kindly furnish to us by May 31, 2006, the details of service charges presently applicable, to enable us to place them on the RBI website. Yours faithfully, (G.Srinivasan) Annual Policy Statement for the year 2006-07 (April 2006) Fair Practices Code: Reasonableness of Bank Charges 162. The Reserve Bank continues to receive representations from the public about unreasonable and non-transparent service charges being levied by banks indicating that the existing institutional mechanism in this regard is not adequate. In order to ensure fair practices in banking services, it is proposed: • To make it obligatory for banks to display and update, in their offices/branches as also on their websites, the details of various service charges in a format to be approved by the Reserve Bank. The Reserve Bank would also place such details on its website. ANNEX- I Service Charges -Minimum Information to be put on the Bank's website
ANNEX – II Service Charges-Minimum information to be displayed in the premises of bank branches. A. Services rendered free of charge: B. Others
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