Bank Charges Compared

That is the point of the table. Read it as a map of who decides, not as a price list. Two banks can charge very different amounts for the same service and both are within the rules.

What can your bank charge you, and who sets the amount?

How should you read this table?

Start at the second column. If it says bank, the number is negotiable in practice and different at every bank. If it says RBI, the number is the same everywhere.

The common misreading is treating the minimum balance figure as the cost. It is not. The cost is the penalty for missing it, and that penalty is a percentage of the shortfall, not a flat fine.

The other misreading is forgetting tax. Every charge in the table attracts 18% GST. A ₹600 non-maintenance charge is ₹708 by the time it hits your balance.

What are the RBI’s rules on minimum balance penalties?

The RBI set five conditions in December 2014. A bank must tell you by SMS, email or letter that a penalty will apply. It must then give you at least one month to restore the balance.

The charge itself must be a fixed percentage of the gap between your actual balance and the required one. It must be reasonable against the cost of providing the service. And it cannot push your account into a negative balance.

That last condition matters most. If your bank has driven a dormant account below zero on charges alone, that is challengeable. Take it to the bank first, then to the ombudsman.

How do you stop paying these charges altogether?

Open the right account type. A basic savings account carries no minimum balance requirement at all. Our list of zero balance savings accounts covers the trade-offs.

If your employer offers one, a salary account usually waives the balance rule and the debit card fee while the salary keeps arriving. Watch what happens when you change jobs. Many convert to a regular account after a few months of no credit.

Then check what you earn on the balance you do keep. A high minimum balance at a low interest rate is a real cost. Compare it against current savings account interest rates.

What can you do about a charge you think is wrong?

Complain to the bank in writing and keep the acknowledgement. If it is not resolved in 30 days, or the reply does not satisfy you, escalate free of charge to the RBI Ombudsman at cms.rbi.org.in.

Unauthorised debits are a different process with much tighter deadlines. Our guide on how to report financial fraud sets out the three-working-day rule that decides your liability.

Common questions

How many free ATM transactions do I get each month?

Five at your own bank’s ATMs. At other banks it is three a month in metro cities and five a month elsewhere. Non-financial transactions such as a balance enquiry, a mini statement or a PIN change count towards that limit. Once you cross it, the charge can be up to ₹23 a transaction, plus GST.

Can a bank charge me for not maintaining a minimum balance?

Yes, but only within limits. The RBI requires the bank to notify you first and allow at least a month to top up. The charge must be a fixed percentage of the shortfall, not a flat penalty unrelated to it. And it must not push the account into negative balance. If your bank has broken any of those conditions, say so in writing.

Do banks charge for NEFT and IMPS transfers?

There is no RBI cap here, so it varies. Many banks charge nothing for online NEFT, RTGS or IMPS from a savings account. The same transfer done at a branch counter is usually charged. Check your bank’s schedule of charges, which every bank must publish on its website.

Why did my bank deduct a small amount with no obvious reason?

The usual suspects are the quarterly SMS alert fee, the annual debit card fee, or a minimum balance penalty. All three are small and easy to miss. Download the statement and look at the narration. If it still makes no sense, ask the branch for a written explanation of the debit.

Is GST charged on bank fees?

Yes, at 18%, on top of the fee itself. This applies to ATM charges, debit card fees, cheque return charges and minimum balance penalties. Interest paid on a loan is not subject to GST, but the processing fee on that loan is.