DBS Bank to fine customers with low account balances, citing RBI rules.

Private-sector lender will charge more for withdrawals and transactions

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DBS Bank India will from August penalise customers who don’t maintain the monthly average balance (AMB) in savings accounts, charging 6 per cent on the shortfall amount. This is part of a broader revision of service charges, including ATM fees, to bring the bank’s practices in line with regulatory norms.

 

Balance shortfall

DBS Bank India has told customers the AMB requirement for most regular accounts remains Rs 10,000. However, non-maintenance penalties will now be calculated as a percentage of the shortfall:

 

• For regular savings and Growth One accounts, customers must maintain an AMB of Rs 10,000. Failing to do so will attract a charge of 6 per cent of the shortfall, capped at Rs 500. 
• For Growth One savings accounts, the AMB requirement is Rs 5,000, with a penalty capped at Rs 250. 
• SB ‘Others’ account holders need to maintain an AMB of Rs 1,000, and the shortfall penalty is capped at Rs 50. 
• Youth-focused accounts such as Lakshmi Savings Youth Power require an AMB of only Rs 100, with a small penalty cap of Rs 5. 
• TASC Savings Youth Power accounts must also maintain Rs 10,000, with a similar Rs 500 cap on charges.

 

These charges will be automatically applied from August 1, and customers are urged to keep track of their balances to avoid unnecessary deductions.

 

Higher ATM withdrawal fees from May 1

Earlier, on May 1, DBS Bank also revised its ATM withdrawal charges based on updated Reserve Bank of India guidelines.

 

Withdrawals from DBS Bank ATMs remain free and unlimited.

 

For other bank ATMs: 

Customers get 3 free withdrawals in metro cities and 5 in non-metro locations.

 

After these limits, a fee of Rs 23 per withdrawal (plus taxes) is charged.

 

For non-financial transactions like balance checks, 7 (metro) and 11 (non-metro) transactions are free, after which the charge is Rs 10.5 per transaction.

 

DBS customers should:

Review and maintain their AMB based on their account type to avoid monthly penalties.

 

Monitor ATM usage, especially at non-DBS ATMs, to stay within free transaction limits.

 

Opt for DBS ATMs or online banking for free and convenient access.