Banking charges update: RBI weighs uniform disclosure template; lenders begin reviewing regulator’s proposals

The Reserve Bank of India has begun consultations with banks on creating a uniform disclosure format for service charges and removing overlapping fees, as the regulator steps up efforts to streamline customer-facing charges, people familiar with the matter told ET.

A senior bank executive said the discussions include having a standardised template that clearly itemises service charges across institutions, including a detailed break-up of loan processing fees from the time an application is submitted until it is sanctioned or rejected. Most state-run banks had earlier removed penal charges for non-maintenance of minimum average balance after a government nudge.




The RBI has also asked lenders to prepare a list of services that can be offered uniformly across branches, including at customers’ home branches. Queries sent to the regulator remained unanswered.

Another executive said banks are internally examining the suggestions made by the RBI last month and will provide their feedback after discussions among private and public sector lenders. “There is a view that banks should have the flexibility to determine the service charges based on the account type. We will also narrow down the list of charges applicable to the personal loan segment,” the executive said, ET quoted.

Earlier this month, RBI governor Sanjay Malhotra said after the monetary policy review that the regulator has been prioritising customer service and has undertaken several measures in this regard.


In August, the finance ministry informed the Lok Sabha that most PSBs had removed minimum balance charges for general savings accounts, while some rationalised them in line with their board-approved policies. “The charges are removed/rationalised as part of their business strategy with the commercial wisdom, in view of the perceived benefits, which may arise in terms of growth in deposits, among others,” minister of state for finance Pankaj Chaudhary had said.


In July, the government told the Rajya Sabha that PSBs levied Rs 2,175 crore as penalties for non-maintenance of minimum average monthly balance in 2024–25.

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