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Bank service charges you should be aware of

From 1st January 2020 bank service charges on RTGS and NEFT has been waived off. This came into effect on the guidelines of the Reserve Bank of India (RBI) guidelines. However, there are some other bank service charges that
a bank customer must be aware of because it has been found that in the wake of being ignorant to the charges being levied for various bank services, a bank account holder end up paying an additional money which he or she could have saved if they had that bank service charges information.

Speaking on the bank service charges information and its importance in saving money for a bank customer Jitendra Solanki, a SEBI registered tax and investment expert said, "Bank service charges for NEFT and RTGS have been waived off from January 2020. However, bank services like a chequebook, bank transaction alert, debit or credit card, ATM money withdrawal, etc. are some other bank services that are charged subject to certain rules by various banks. Hence, a bank customer must know about the banking services he or she is using and the rules related to that bank service charges so that they can use that bank service charges information for avoiding any kind of additional money deduction from their savings account."

So, here are some bank services and the charges related to them that a bank customer should be aware of and save money deduction from one's savings and other accounts:

1] IMPS fund transfer: NEFT and RTGS have been allowed free of cost for all Indian banks for its customers. So, all those bank customers who have an online net banking facility can now transfer money free of cost through NEFT and RTGS. However, there is one more mode of online money transfer — IMPS. This IMPS bank service charge is not free. So, one should use the IMPS fund transfer facility only when it's urgent. Otherwise, it is better to avoid IMPS and send money through NEFT or RTGS.

2] Minimum Balance: Each bank asks from its customers to maintain a minimum monthly or quarterly average balance that doesn't mean you need to keep the minimum average balance throughout the month. It means you have to keep an average monthly or quarterly balance. Suppose, you have to maintain Rs 10,000 minimum balance in your account, it means if there is minimum Rs 3,00,000 balance in your savings account for one day, then in case of a 30 days month, this minimum average monthly balance is met. Now, if required, you can use the entire amount of your bank savings account. However, if you fail to maintain that minimum average monthly or quarterly balance, then you have to face a penalty from your bank. So, you must know the minimum average balance rules of your bank.

3] ATM money withdrawal: As per the RBI guidelines, one can withdraw money through ATM transactions up to 5 times a month. Beyond that limit, one's ATM money withdrawal will attract bank service charges. So, a bank customer is advised to fish out as much of cash from one's ATM transaction in the maximum five transactions that are enough to meet their cash needs. Missing one's debit or credit card may lead to some bank service charges for getting a new one for that. One should also know that resetting one's debit or credit card PIN is also chargeable by some banks. So, you are advised to know all the bank service charge details related to your debit and credit card.

4] Transaction alert: Sending transactions and other account-related information to the bank customer is aimed at securing safe and secure banking. However, to ensure safe and secure banking attracts bank service charges. Generally, a bank charges Rs 15 per quarter for sending SMS alert in regard to your bank account like EMI, bill payments, etc.

5] Document charges: Some times your bank charges for giving physical documents like passbook, a hard copy of the bank statement, etc. So, it's better to regulate one's bank account through net banking rather than asking for a print out of one's bank statement. The monthly bank statement send through e-mail is free from any charge. So, it's better to use that rather than asking for a fresh print out of one's bank statement. If required, take a print out of your bank statement through net banking and get it attested by your bank. However, some banks are also smart in this regard and they charge for the attention of your signature and bank statement also. So, you should find out the bank service charges levied on you before availing such the above-mentioned bank service charges.

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