Savings account holders with Axis Bank will have to pay more for ATM withdrawals, SMS alerts and have to maintain a higher minimum balance in their accounts
Savings account holders with Axis Bank will have to pay more for ATM withdrawals, SMS alerts and have to maintain a higher minimum balance in their accounts
However, the penalty for non-maintenance of minimum balance has decreased along with service charges for signature verification, photo attestation, stop payment of cheque, address confirmation and others.
New SMS Charges And Exemptions
SMS alerts are a value-added service which will invite a charge of 25 paise per SMS effective from July 1, 2021.
The present rate of Rs 5 per month for certain value-added services alerts will continue till June 30, 2021.
The nature of messages exempted include those promoting bank services and OTP messages.
Accounts that are exempted from this notification include-
- Burgundy
- Burgundy Private
- Priority
- NRI
- Trust & Government Accounts
- Defense Salary Accounts
- Staff Accounts
- Small & Basic Accounts
- Pension Accounts
- Select Salary relationships.
RBI Directs Banks To Charge For SMS Alerts
The RBI has asked banks to send out SMS notifications for each transaction as an anti-fraud measure.
The transactions in question include those made with debit cards, ATM withdrawals, NEFT and RTGS transactions once fund transfer is complete.
SMS alerts sent out for the aforementioned activities will not be chargeable.
It has also allowed for banks to impose fees on the basis of actual usage which would encourage customers to utilise the service in a reasonable manner.
The apex bank has made the decision bearing in mind the technology that banks and telcos possess.
Changes From May 1, 2021
After the free limit of cash withdrawal from ATMs is reached, customers will have to pay Rs 10 per Rs 1000 or Rs 150, whichever is higher, with effect from May 1, 2021.
Easy Savings schemes in metro regions will have to have an average balance requirement of Rs 15,000- a hike from the earlier Rs 10,000.
The penalty for non-maintenance of balance has been revised to Rs 50 from Rs 150 for all locations. This applies to account holders who may have missed the threshold by a narrow margin.
Salary accounts which are older than 6 months and have not been credited in a calendar month will be fined Rs 100 per month.
Savings account holders will have to pay Rs 100 in a one-time payment in the 18th month if there are no transactions for 17 consecutive months.
RBI Imposes Rs 25 Cr Fine On YES Bank For Fraud In Selling Bonds To Investors, learn more.
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