The Hindu Business Line : RBI directive to banks to display service charges

The Reserve Bank of India has directed the banks to display and update on their Web sites, as also in their offices and branches, the details of the charges prescribed by them for various services.

The RBI, in a notification, has advised the banks to display the charges in specified formats. The display may also be in local language.

It has pointed out that the decision to prescribe the service charges is left to the discretion of the boards of individual banks. However, the banks are expected to ensure that the charges are reasonable and consistent with the cost of providing these services. It is also expected of the banks to see to it that the customers with low value/volume are not penalised.

But the RBI has been receiving representations from the public about "unreasonable and non-transparent" service charges being levied by the banks. This indicated that the institutional mechanism now in place in this regard is not adequate, says the notification.

Apart from displaying, the RBI has instructed the banks to furnish it with the details of the various service charges by May 31 for placing them on the RBI Web site.

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