CB mulls action against banks imposing charges sans public disclosure

The Central Bank (CB) is contemplating to initiate action against banks which impose various charges on their customers without public disclosure. 

Responding to a media query on the legality of banks imposing service charges on customers for their failure to maintain minimum balance on savings accounts, a CB official said that although banks could impose such charges, the customers need to be informed in advance on such charges.

“There are no regulations hindering the banks’ ability to impose such a charge given it’s made public. However, if banks are imposing such charges without a public disclosure, it’s wrong and prohibited,” the CB official said. 

It was reported that some banks were imposing service charges on their customers in an ad-hoc manner for not maintaining a minimum balance on savings accounts, without informing them in advance. 

The CB stated that it has been communicated to the banks to inform their customers on such charges in advance.

Further, the CB requested public to report incidents where banks arbitrarily slap such charges on them.