PNB to increase service charges; move irks customers

Experts said that customers might move away to other banks

Aurangabad, Jan 11:

The Punjab National Bank (PNB) has announced hike in service charges from January 15, 2022 for services like quarterly average balance, non-maintenance of minimum account balance (MAB), locker charges and among others. The massive hike has irked customers and banking experts who said that such a move might see customers move away from PNB.

Minimum balance requirement in the accounts in urban areas will be hiked to Rs 5,000 and metropolitan to Rs 10,000. For customers not maintaining MAB in rural and semi-urban areas are being increased to Rs 400 from Rs 200, while for urban and metro, it would be Rs 600. Giving more information, banking expert Nitin Bagadiya said that this minimum balance circular of PNB is completely contrary to the circular issued by the Reserve Bank of India (RBI) in 2014 and is illegal. Definite penalty cannot be levied if there is no minimum balance in the account as per the directives. The amount of the penalty can be levied only if the amount is less than the minimum balance rule. The amount has to be specifically charged only on the amount that is below the MAB. For this, the customer needs to be informed by SMS, email or letter, giving them one month to restore the balance to avoid penal charge, said Bagadiya. However, when tried to contact local PNB officials, they denied commenting stating that they have to look into the circular.

Customers must teach a lesson

The bank, which has failed to recover the arrears of large borrowers, is now looking into the pockets of its customers. Customers must teach a lesson to such banks in an organized manner, otherwise the rest of the nationalized banks are likely to follow the footsteps of PNB, said Saurabh Kulkarni, customer and banking expert.

Charges to be applicable from Jan 15:

Minimum account balance: Penalty

Rural area: Rs 1,000 Rs 400

Semi urban area: Rs 2,000 Rs 400

Urban area: Rs 5000 Rs 600

Metropolitan : Rs 10,000 Rs 600

Transaction fee for saving account:

PNB will allow three free transactions every month, after which Rs 50 per transaction will be charged as service fee.

Bank locker charges

While increasing charges for locker rental for medium size by Rs 1,000 for rural, semi-urban and urban and metro areas, PNB has restricted the number of free visits to 12 from 15 earlier. After the free 12 visits, the customer will have to pay Rs 100 per visit for every visit to the locker.