Banks flayed for service charges

Visakhapatnam: Indian banks both in private and public sectors registered a world record in collecting the highest amount towards customer service charges coupled with service tax while providing 54 different customer services, said president of Andhra Pradesh Editors’ Association (APEA) V V R Krishnam Raju.

Highlights:

• Over 1,000 customers of various banks sent representations to the Reserve Bank Governor demanding reduction in the hiked service charges
• Reserve Bank of India has been watching the collection of heavy customer charges as a mere spectator, flays president of Andhra Pradesh Editors’ Association (APEA) V V R Krishnam Raju.
• Association demands CBI probe into banks’ NPAs

Addressing a press conference here on Sunday, Krishnam Raju alleged that the credit of collecting the highest amount as customer charges goes to Indian banks as per the survey done by Standard and Poor Global Organisation. With the imposition of service tax additionally in India, the bank customer service charges became burdensome on the Indian customers. Stating that the Indian banks which had earlier encouraged opening of zero balance accounts, he said it is now brought the accounts under the purview of service charges.

He flayed that the Reserve Bank of India has been watching the entire show of collecting heavy customer charges as a mere spectator which hinders the development of the nation and thereby economic equality will not be achieved. “Over 1,000 customers of various banks have already sent representations to the Reserve Bank Governor demanding reduction in the hiked service charges under the aegis of Andhra Pradesh Editors’ Association. A meeting with all bank customers will be soon held in Vijayawada against collecting huge amounts towards service charges”, he explained.

Krishnam Raju questioned when the State Bank of India has announced that it has earned a profit of about Rs 9,950 crore at the end of last fiscal, why it was imposing additional service charges on customers and presently, it is collecting 54 different types of service charges.

He felt though the nationalisation of banks aimed at focussing on public welfare, agriculture and development of cottage and small scale industries in rural areas, the banks were now functioning contrary to the very objective and incurring losses by granting loans to big industrialists and business people.

To overcome such losses, the banks are imposing charges heavily on customers, he added. When asked to name some of the bank services on which the banks were charging heavily, he informed that it includes issue of multi city cheque book, for non-maintenance of monthly average balance in savings account, transfer of accounts, closure of accounts, collection of bills, collection of cheques under speed clearing system and safe deposit lockers.

Informing that of the total Rs 17.5 lakh crore of liquid cash in circulation presently in the country, about Rs 7 lakh crore given to industrialists as loans were converted into Non-Performing Assets (NPAs), he demanded a CBI probe into the NPAs.
Convener of Andhra Pradesh High Court Advocates’ Committee D S N V Prasad Babu, Editor, Features India Telugu daily Bharanikana Rama Rao and social activist S U N Murty who were present demanded that the Centre initiate steps for reduction of bank customer charges.