Axis Bank, the country’s third largest private lender, said it will raise the minimum average quarterly balance by 20 times to Rs 10,000 from Rs 500 now on its students’ savings account (SBSTU) in metro and urban centres. “We periodically review our charges and fee structures to stay in line with market practices and related changes.
As part of the review, the average quarterly balance requirements of various accounts have been revised with effect from next quarter cycle — June 15 to September 14. Non-maintenance of balances attracts charges as per extant guidelines,” the bank told its savings account depositors in a notice.
The minimum average quarterly balance has been raised for 17 savings deposit products too. “The prescribed average quarterly balance for savings bank accounts, revised after a gap of nine years, is now in line with (other) banks offering similar services,” the bank’s official spokesperson said.
With the bank shedding home branch concept, it has introduced cash transaction charges for deposits and withdrawals of funds at all branches. Earlier, these transactions were charged only if they were made at a non-home branch.
According to the new norms, the first five transactions or Rs 10 lakh of cash deposit or withdrawal across the branches will be free. However, once this limit is crossed, the bank will charge Rs 4 per Rs 1,000 or Rs 100 on bigger transactions.
“We have revised our cash transaction limits and charges for anywhere banking services, which allow you to deposit or withdraw cash at any Axis Bank branch pan India. These charges will be calculated on a monthly basis and will come into effect from 15 May, 2012,” the bank said.
Earlier, ICICI Bank and HDFC Bank had increased their charges on savings deposits. The lenders have also mandated that customers will now have to maintain the minimum balance on a monthly basis instead of the earlier practice of quarterly cycle.
These banks , including Axis Bank, have not raised the interest rate on savings deposit accounts after the rate was deregulated by the Reserve Bank of India late October 2011. Some of the mid-sized private lenders, including YES Bank, Kotak Mahindra Bank, IndusInd Bank, Ratnakar Bank and Karnataka Bank, have already announced hike in their savings deposit rates.
The rupee today tumbled by 26 paise to trade at a new low of Rs 56.50 against the US dollar in early trade on increased capital outflows and strong ...