Bank of Baroda rolls back cash deposits, withdrawals related charges after public outcry
Cash Deposits, Withdrawals Charges: Days after announcing new changes in the cash deposits, withdrawals charges, Bank of Baroda (BoB) on Tuesday withdrew it with immediate effect and said it would not charge for basic banking services following a public outcry.
The announcement came days after the bank said it would begin charging customers for basic transactions, including deposits and withdrawals, above certain limits.
“We refer to our circular No.HO: BR: 112:393 dated 29.09.2020 regarding revision of Cash related service charges related to basic services w.e.f 01.11.2020. In view of the current prevailing COVID-19 pandemic and its impact on the Economy, it has been decided to withdraw the above circular with immediate effect,” the public sector lender said in its latest circular.
cThis development comes after Ministry of Finance earlier in the day clarified about the charges and announced that no service charge is applicable on the Basic Savings Bank Deposit (BSBD) accounts including Jan Dhan accounts.
“Regular Savings accounts, Current Accounts, Cash credit accounts & Overdraft accounts: While the charges have not been increased, Bank of Baroda had made certain changes w.e.f. 1st Nov 2020, with regard to the number of free cash deposits and withdrawals per month,” the finance ministry said in a series of tweets.
Further, no other PSB (public sector bank) has increased such charges recently, the ministry added.
“As per RBI guidelines, all banks, including PSBs, are permitted to levy charges for their services in a fair, transparent & non-discriminatory manner, other PSBs have also intimated that they do not propose to raise bank charges in the near future in view of COVID pandemic,” it said.
However, as per RBI guidelines, all banks, including PSBs, are permitted to levy charges for their services in a fair, transparent and non-discriminatory manner, based upon the costs involved.
