Relax! Free Banking Services Are Not Going To End On 20th January 2018

Since last 48 hours, several credible and traditional news publications had shared reports that free banking services in public sector banks shall cease to exist after 20th January 2018.

As per the rumours, basic banking operations such as cash withdrawal and deposit shall be charged from now on.

Dismissing all such rumours, The Indian Banks’ Association (IBA) has clarified that no such thing will happen.

However, as we dig deeper into this rumour, we will find Bank of India’s internal memos, wherein they have referenced to few additional charges being levied starting 20th January.

What is the truth here?

The Start of Rumors – Free Banking Services To Be Charged Now

Between 10th and 11th January, news reports began emerging wherein it was mentioned that banks, especially Bank of India will start charging for basic banking operations, and there won’t be any free banking services left now.

The Tribune newspaper stated that effective 20th January, activities like updating eKYC and blocking or unblocking net banking or debit card will be charged Rs 25/-.

These banking operations are free as of now.

Even asking for account statement shall be charged Rs 25/-, besides, Rs 25/- charge for NEFT funds transfer up to Rs 2 lakh, and Rs 50/-  for issuing a duplicate passbook were mentioned.

TheLogicalIndian posted a story, wherein it was mentioned that Bank of India has ‘proposed’ to charge Rs 10/- for every cash withdrawal up to Rs 50,000/- and Rs 10/- for every cash withdrawal via cheque.

They also shared some proofs, which were internal memos from Bank of India website, but the wording seems ambiguous.

Indian Banks’ Association: Don’t Pay Heed To Rumors!

After this news became viral on social media, Indian Banks’ Association (IBA) had to come out, and issue a clarification that these are rumours, and banks have no such plans to start charging for basic banking operations.

In a press release, they said,

“There is neither a move by banks for a blanket removal of free services nor such a thing is being contemplated,”, adding, “It is clarified by IBA that these rumours are baseless and false. The public should be careful, and should not get misled by such messages. Such news is pure rumours and there are no such fresh RBI instructions/guidelines on this.”

This clarification becomes more important because it was shared by Rajeev Kumar, who is Secretary Department of Financial Services (DFS) under Ministry of Finance.

 

He also tweeted:

No proposal by Banks to discontinue free services from 20th January. Pure Rumours. Pl Ignore , advises Indian Banking Association clarifying that rumours in section of social media are baseless and no such blanket removal.@finmin@pmoindia@PIB@ ANI

— Rajeev kumar (@rajeevkumr) January 10, 2018

Interestingly, in their press statement, IBA has also said

“However, banks, looking at their commercial and operational costs, would constantly examine and revise charges as the case may be,”

We will keep you updated as the mystery regarding free banking services unfolds.

Stay tuned!