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Date: 26/05/2006
UCBs advised to display Service Charges in their branches/on Website

RBI/ 2005-06/392
UBD. (PCB).Cir.No.54/09.39.000/05-06

May 26, 2006

The Chief Executive Officers of
All Primary (Urban Co-operative Banks)

Dear Sir/Madam,

Annual Policy Statement for the year 2006-07- Fair Practices Code- Display of Bank Charges-UCBs

Please refer to the paragraph 162 of the Annual Policy Statement for the year 2006-07, a copy of which is enclosed.

2. As per extant instructions, the decision to prescribe service charges is left to the discretion of the Boards of individual banks. Banks would normally be expected, while fixing the service charges, to ensure that charges are reasonable, consistent with the cost of providing these services and that the customers with low value/volume of transactions are not penalized.

3. The Reserve Bank continues to receive representations from the public about the unreasonable and non-transparent service charges being levied by banks indicating that the existing institutional mechanism in this regard is not adequate. In order to ensure transparency in banking services, scheduled banks are advised to display and update, on their website, the details of various service charges in the enclosed format in Annex I. The formats could be modified depending on products offered.

4. Further, all other UCBs including scheduled UCBs are also advised to display the charges relating to certain services as at Annex II. This may also be displayed in the local languages.

5. Scheduled UCBs may furnish to us by June 15, 2006 the details of service charges presently applicable (Annexure II) , to enable us to place them on the RBI website. Further, changes in service charges from time to time may also be furnished to us to update the information.

Yours faithfully,

(N.S.Vishwanathan)

Chief General Manager-in-charge.


Annual Policy Statement for the year 2006-07 (April 2006)

Fair Practices Code: Reasonableness of Bank Charges

162. The Reserve Bank continues to receive representations from the public about unreasonable and non-transparent service charges being levied by banks indicating that the existing institutional mechanism in this regard is not adequate. In order to ensure fair practices in banking services, it is proposed:

• To make it obligatory for banks to display and update, in their offices/branches as also on their websites, the details of various service charges in a format to be approved by the Reserve Bank. The Reserve Bank would also place such details on its website.


ANNEX- I

Service Charges -Minimum Information to be put on the Bank's website

Name of the bank

Savings Bank A/c - No frills A/c

Minimum Balance

Charges for non maintenance thereof

Saving Bank Accounts with Cheque facility

Minimum Balance

Charges for non maintenance thereof

Saving Bank Accounts without Cheque facility

Minimum Balance

Charges for non maintenance thereof

Other savings bank account facilities

Issue of Duplicate Statement

Issue of loose cheque leaves

Issue of duplicate pass book

Mode of calculation of minimum balance

Remittance Facilities through own bank

DD- Issue

DD-Cancellation

DD-Duplicate

DD-Revalidation

PO - Issue

PO-cancellation

PO-Duplicate

PO-Revalidation

TT - Issue

TT - Cancellation

TT-Duplicate

TT-Revalidation

EFT Charges- inward

EFT Charges- outward

RTGS-Outward

RTGS-Inward

Collection of Cheques

Remittance Facilities through other bank

DD- Issue

DD-Cancellation

DD-Duplicate

DD-Revalidation

PO - Issue

PO-cancellation

PO-Duplicate

PO-Revalidation

TT - Issue

TT - Cancellation

TT-Duplicate

TT-Revalidation

EFT Charges- inward

EFT Charges- outward

RTGS-Outward

RTGS-Inward

Collection of Cheques

Foreign Exchange Transactions

Remittance Outward

Remittance Inward

TCs - Selling

TCs - Encashing

TCs - Foreign Currency

Cheque Collection

Local

Outstation through own bank

Outstation through another bank

Bouncing of cheques- Local

Bouncing of cheques- outstation- through own bank

Bouncing of cheques- outstation- through another bank

Retail Loan

Loan Processing Charges

Prepayment Charges

No due Certificate

Solvency Certificate

Charges for late payment of EMI

Charges for changing from fixed to floating rates of interest

Charges for changing from float to fixed rates of interest

Cards

ATM

Membership fee

Annual Fee

Renewal Charges

Late Payment Charges

Interest Charges

Replacement charges

Transaction Charge for Partner banks

Transaction Charge for Non-Partner banks

Credit Card

Membership fee

Annual Fee

Renewal Charges

Late Payment Charges

Interest Charges

Replacement charges

Cash withdrawal

Debit Card

Membership fee

Annual Fee

Renewal Charges

Late Payment Charges

Replacement charges

Cash withdrawal

MISCELLANEOUS

Balance enquiry

Balance Certificate

Interest Certificate

Account closure

Use of Fax/Telephone/Modem

Photo attestation

Signature attestation

Stop Payment Charges

Inoperative account


ANNEX – II

Service Charges-Minimum information to be displayed in the premises of bank branches.

A. Services rendered free of charge:

B. Others

Minimum Balances to be maintained in the SB account

Charges leviable for non-maintenance of minimum balance in SB account

Charges for collection of outstation cheques

Charges for issue of Demand Draft

Charges for issue of cheque books, if any

Charges for account statement

Charges for account closure, if any

Charges for deposit/withdrawal at ATM locations, if any

 
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