Service Charges

In the Indian banking system, service charges are fees levied by banks on various banking services provided to customers. These charges are typically applied to cover the costs incurred by the bank in delivering these services and maintaining the infrastructure required for banking operations.

Service charges may vary depending on the type and frequency of transactions, account type, and the bank’s policies. Common services for which charges may be levied include checkbook issuance, account maintenance, online banking transactions, demand drafts, and fund transfers. While some basic services may be offered free of charge, banks often impose fees for specialized or premium services.

The Reserve Bank of India (RBI) regulates service charges levied by banks to ensure transparency and fairness in banking practices, protecting the interests of customers. Additionally, banks are required to disclose their service charges to customers upfront, enabling them to make informed decisions while availing banking services.