After Bank of Baroda made changes in number of free transactions, rumours were triggered that public sector banks are raising their service charges. Finance ministry has, however, refuted these rumours and clarified there is no such increase for usual savings and current accounts.
The Finance Ministry said that there has been no increase in service charges by any public sector bank even as Bank of Baroda decided to withdraw changes made with regard to the number of free cash deposit transactions in a bank account per month.
Bank of Baroda had made certain changes with effect from November 1, 2020, with regard to the number of free cash deposits and withdrawals per month, a Finance Ministry statement said. “The number of free cash deposits and withdrawals, have been reduced from five each per month to three each per month, with no change in the charges for transactions in excess of these free transactions,” it added.
“Bank of Baroda has since informed that in the light of the current COVID related situation, they have decided to withdraw the changes. Further, no other PSB has increased such charges recently,” the ministry said in a statement.