The Reserve Bank of India (RBI) is taking steps to make banking fees clearer for customers.
It is working with banks to create a system that discloses all fees and service charges in a single format.
The goal is to eliminate hidden and overlapping charges, ensuring that customers know exactly what they are paying.
Banks are also preparing to provide complete details of loan processing fees, so borrowers can make informed decisions.
This comes after public sector banks removed penalties for non-maintenance of minimum balances earlier this year.
Standardized Rules Across Banks
The RBI has asked banks to prepare a list of services with uniform charges across branches.
While discussions are ongoing between public and private banks, the aim is to give banks some flexibility to adjust fees based on the type of account, while shortening the list of charges for personal loans.
This step is expected to make banking simpler and more transparent for customers, reducing confusion over multiple fees and hidden costs.
RBI Focuses on Customer Service
RBI Governor Sanjay Malhotra emphasized that the central bank is prioritizing customer service.
Following the MPC meeting, he highlighted efforts to make banking fairer and more transparent.
Earlier, the Finance Ministry informed the Lok Sabha that most public sector banks had removed or rationalized minimum balance charges for savings accounts.
Minister of State for Finance Pankaj Chaudhary explained that this strategy could help increase deposits and make banking more customer-friendly.
