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Bank of Baroda withdraws order reducing free cash transactions

The government said that none of the state-owned banks proposed to raise bank charges in the near future in view of the Covid-19 pandemic

Topics
Bank of Baroda | PSU Banks | Finance Ministry

Somesh Jha  |  New Delhi 

Bank of Baroda
Bank of Baroda is an Indian state-owned international banking and financial services company | Photo: Shutterstock

State-owned has reversed its decision to reduce the maximum number of free cash transactions every month, the ministry said in a statement on Tuesday.

The ministry came out with a statement following “several media reports alluding to steep increase in service charges by certain public sector ” It stated that among the state-owned banks, only had decided to lower the cap on free cash deposits and withdrawals from 5 to 3 in a month. There was, however, “no change in the charges of transactions in excess of these free transactions,” according to the ministry.

has since informed that in the light of the current Covid-19 related situation, they have decided to withdraw the changes. Further, no other PSB has increased such charges recently,” the official statement said.

The government said that none of the state-owned proposed to raise bank charges “in the near future in view of the COVID-19 pandemic.”

“Although, as per RBI guidelines, all banks, including PSBs, are permitted to levy charges for their services in a fair, transparent and non-discriminatory manner, based upon costs involved,” the finance ministry clarified.

With effect from November 1, Bank of Baroda had earlier said it would levy Rs 50 per deposit transaction beyond the free limit of three deposits in a month. For cash withdrawals, the charges were supposed to be Rs 125 per transaction in metro urban regions and Rs 100 per transaction in rural and semi-urban regions.

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First Published: Tue, November 03 2020. 15:48 IST
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