Banks like Yes Bank, ICICI Bank, and IDFC First Bank have revised some of their service charges with effect from May 1, 2024.
The month of May will see a couple of significant changes in terms of investment, mutual fund KYC norms, surcharges on utility payments, and others. Last month, ICICI Bank and YES Bank said they would revise their charges for savings accounts from May 1.
Besides, YES Bank and IDFC First Bank said that credit card users have to shell out 1% surcharge fee on all utility bill payments.
Here are the top 5 changes you would see in May.
1. ICICI Bank
Last month, ICICI Bank, India’s second-largest bank by market capitalisation, said it would revise the charges for some of its services for customers. These would include charges related to ATM usage, debit cards, cheque books, IMPS, stop payment, signature attestation, and more.
- Debit Card Fees: The annual fee of Rs 200 for regular locations and Rs 99 for Gramin locations.
- Cheque Books: The first 25 cheque leaves annually are free of charge. After that, there is a charge of Rs 4 per leaf. However, there is a transaction cap of Rs 25,000.
- Cash Transaction Charges: If you perform cash transactions at your home branch, you will receive 3 free cash transactions per month. After that, there is a charge of Rs 150 per transaction.
- MPS Charges:
Amount up to Rs 1,000 – Rs 2.50 per transaction
Amount above Rs 1,000 to Rs 25,000 – Rs 5 per transaction
Amount above Rs 25,000 to Rs 5 lakh – Rs 15 per transaction. - Stop Cheque Payment Charges: For a particular cheque – Rs 100 (Free through customer care IVR and internt banking).
- Issuance of Duplicate Pass Book: The bank will charge Rs 100 for issuance of duplicate pass book and Rs 25 per page for updation.
- ECS / NACH Debit Returns : Rs 500 per instance for financial reasons. Maximum recovery of up to 3 instances per month for the same mandate.
- Card replacement : For a replacement card in the event of lost or damaged card, the customer will have to shell out Rs 200.
- Surcharge on Railway Bookings: Customers will be charged 1.8% of bookings as per Visa regulations.
- Photo and Signature Attestation: For photo and signature attestation related to savings accounts, the bank will charge Rs 100 per application from customers.
- Cash Deposit Charges : The bank will charge Rs 50 per transaction, to be levied on cash deposited in the cash acceptor/recycler machines on bank holidays and between 06.00 p.m. and 08.00 a.m. on working days.
The bank will levy charges if the cash deposit in the cash acceptor/recycler machines exceeds Rs 10,000 per month between 6 pm and 8 am on working days or on bank holidays.This charge will not apply to senior citizens, basic savings bank account holders, Jan Dhan account holders, incapacitated and visually impaired persons, student accounts, or any other accounts identified by ICICI Bank.
2. Yes Bank savings accounts
In April, Yes Bank said it will revise its minimum average balance (AMB) requirements across different savings account variants.
- Rs 5000 for Savings Value / Kisan SA, maximum charge is Rs 500
- Rs 2500 for My First YES, maximum charge is Rs 250
- Savings Account Pro Plus, Yes Essence SA, and YES Respect SA will necessitate an AMB of Rs 25,000, with a maximum charge of Rs 750.
- Savings Account PRO will mandate an AMB of Rs 10,000, with a similar maximum charge of Rs 750.
Yes Bank provides interest rates from 3% to 7% based on savings account balances. These rates apply to all account holders, including regular, senior citizens, rural, semi-urban, and urban customers. The rates will be in effect starting from January 1, 2024.
If balance maintained is: = 100% of the requirement- NIL 50% of the requirement- 5% of balance shortfall
The Yes Bank website noted: “^AMB requirement, as defined by YES BANK from time to time, at select locations, is Rs 5,000 for YES Grace, Rs 2,500 for YES Respect and Rs 2,500 for YES Value. For Kisan Savings A/c, Average Yearly Balance (AYB) of Rs 1,000 is required at all locations. For Savings value where AMB requirement is Rs 2,500, Maximum Charges for non-maintenance of balances is capped at Rs 125 per month. For Kisan Savings A/c, Charges would be Rs 100 per annum.”
Yes Bank credit cards
Starting May 1, YES Bank credit cards will charge a 1% surcharge for utility bill payments. As per the latest regulations, Yes Bank customers will have a free usage limit of Rs 15,000 in the billing cycle. Beyond that, the Yes Bank will add GST and a 1% tax to the expenditure.
As per the bank, the changes will only affect the fuel fee category on some of the bank’s credit card types. ‘Private’ credit card type has been barred from these revisions. According to the YES Bank website as of March 29, 2024, “A charge of 1% will be applicable on all utility transactions in a statement cycle.”
IDFC First Bank credit cards
IDFC First Bank has announced that it will levy an additional 1% surcharge plus GST when the cumulative amount of credit card payments for utility bills exceeds Rs 20,000. However, this surcharge will not apply to the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card.
The bank has clarified that if the total amount of utility bill transactions (gas, electricity, and internet) within a statement cycle is Rs 20,000 or less, no surcharge will be imposed. Conversely, if the total exceeds Rs 20,000, an extra 18% GST will be added to the 1% surcharge.