IBA denies social media talks on ending free banking services

Bankers' body Indian Banks Association today scotched reports circulating on social media that banks are planning to discontinue all free services from January 20.
The industry body, however, said in a statement that banks will continue to review their transaction charges based on operational and commercial viabilities.
"There are reports in some segments of social media that all free services by banks will be ceased from this January 20," the statement said.
"There is neither any move by banks for such a blanket removal of free services nor such a thing is being contemplated... it is clarified that these are baseless and false information," it said.

There were messages circulating on social media since the past week or so that banks would introduce new charges on various services from January 20.
"Cash withdrawal of a maximum of Rs 50,000 will be allowed only to account holders by self-cheque and there will be charge of Rs 10 per transaction, which will be auto- debited," says a message doing the round in WhatsApp groups.

Another such message says each cash withdrawal of up to Rs 10,000, allowed to third-party account holder by cheque, will be charged Rs 10. It also said each cheque deposit will attract a charge of Rs 10 plus speed clearing charges.

The IBA statement, however, said, "Banks are looking at commercial and operational costs and would constantly examine and revise charges as the case may be."
The association also warned the public not to get misled by such messages as "such news is pure rumours and there is no fresh instruction/guidelines on this by the Reserve Bank", it added.