Charges levied by banks

Minimum Monthly Average Balance (MAB)

It is the amount a bank account holder must maintain in their savings or current account during a calendar month.
If the balance falls below this requirement, the bank imposes a penalty charge.

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This content originally appeared on DEV Community and was authored by Madhav Ganesan

Minimum Monthly Average Balance (MAB)

  • It is the amount a bank account holder must maintain in their savings or current account during a calendar month.
  • If the balance falls below this requirement, the bank imposes a penalty charge.

Debit Card Charges

  • An annual fee is charged for holding a debit card, usually between ₹100 and ₹500 depending on the card type.
  • These renewal charges apply once the card reaches its expiry date.
  • If a debit card is lost or damaged, banks charge ₹100 to ₹250 for issuing a replacement card.

Transaction Charges (Cash and Digital)

  • Cash transaction limits, including both deposits and withdrawals (by self or third party), are typically capped at 3 to 5 free transactions per month. Beyond this, banks may charge ₹100 per transaction.
  • For cash transactions exceeding ₹2,00,000 in value in a month (including both deposit and withdrawal by self or third party), banks charge ₹5 per ₹1,000 or part thereof, subject to a minimum of ₹150.
  • Transaction charges apply to ATM withdrawals, NEFT, RTGS, and IMPS. For instance, ATM withdrawals beyond the free limit are charged at ₹21 per transaction.

Non-Home Branch Charges

  • Banks impose charges for services at non-home branches.
  • These include ₹100 to ₹150 for cash deposits or withdrawals after exceeding free limits.

Cheque and Draft Charges

  • Charges are levied for issuing Demand Drafts (DD) or Manager’s Cheques (MC), typically ₹1 to ₹5 per ₹1,000, with minimum amounts starting from ₹25 to ₹50.

Depository Participant (DP) Charges

  • These are applicable when holding and transacting through a Demat account.
  • These include transaction charges (₹10–₹30 per ISIN for sell orders) and annual maintenance charges (₹300–₹750).

POS (Point of Sale) return

  • It refers to the process of returning a product or service purchased at a retail store or online using a debit/credit card or any other payment method at the point of sale (POS).

Foreclosure charges

  • It refers to the fees that a borrower may have to pay if they choose to pay off their loan (such as a home loan, personal loan, or car loan) before the agreed-upon tenure, i.e., before the end of the loan's term.

ECS / ACH (Debit) Return or ECS (Electronic Clearing Service) and ACH (Automated Clearing House)

  • These are electronic payment systems used by banks to transfer funds, often for recurring payments like utility bills, loan repayments, or subscriptions
  • A Debit Return occurs when the bank cannot process the payment request due to various reasons, such as insufficient funds, incorrect details, or authorization issues

SMS Charges

  • These are levied for sending or receiving messages related to transactions.

SI (Standing Instruction) Rejection

  • It is a pre-authorized instruction given by a bank account holder to the bank to make regular, automated payments or transfers from their account.
  • These can be for payments like loan EMIs, subscription fees, utility bills, or regular transfers to another account.

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This content originally appeared on DEV Community and was authored by Madhav Ganesan


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