Are Banks Secretly Charging You? Here’s a List of Hidden Fees Every Indian Must Know

New Delhi: While Indian banks offer a wide range of financial services to their customers, these conveniences often come with hidden costs. From ATM withdrawals and cheque issuance to fund transfers and loan processing, banking services in India are subject to various charges that differ across institutions and account types. Understanding these fees is crucial for customers aiming to manage their finances more effectively.

Most Common Bank Charges in India

1. Minimum Balance Charges
Savings accounts typically require customers to maintain a minimum balance. Falling below this threshold can result in penalties ranging from ₹300 to ₹1,000, depending on the bank and account type.

2. ATM Withdrawal Fees
While banks allow a few free ATM withdrawals each month, exceeding this limit — especially on ATMs outside the bank’s network — can cost ₹20 to ₹50 per transaction.

3. Cheque Bounce Penalties
Banks impose cheque bounce penalties ranging from ₹250 to ₹500 if a cheque fails due to insufficient funds or other reasons.

4. Cheque Book Issuance Fees
Once the free cheque leaves are exhausted, customers are charged around ₹100 for a 25-leaf cheque book.

5. Fund Transfer Charges
Transfers through NEFT and RTGS also incur charges. NEFT transfers below ₹10,000 attract a fee of ₹2.25, while transactions above ₹2 lakh may cost up to ₹24.75. Charges vary slightly between banks.

6. Loan Processing Fees
Banks charge loan processing fees between 0.5% to 2% of the loan amount, depending on the type of loan and bank policy.

7. Account Maintenance Charges
Current accounts may attract annual maintenance fees ranging between ₹500 and ₹1,500 if specific conditions are not met.

8. Overdraft Fees
Customers who overdraw their accounts can expect charges between ₹400 and ₹800 per transaction.

9. Extra Service Charges
Banks may charge ₹50–₹100 for balance confirmations, ₹120 for stop-payment instructions, and ₹250 for transactions involving a power of attorney.

Tips to Avoid Excessive Bank Charges

• Maintain Minimum Balances to avoid maintenance penalties.
• Use In-Network ATMs to reduce withdrawal fees.
• Enroll for Direct Deposits, which may help waive off certain fees.
• Monitor Account Statements to identify any unexpected charges.
• Leverage Online Banking to avoid in-person and paper statement fees.
• Link Accounts for Overdraft Protection to prevent hefty penalties.
• Plan Withdrawals Wisely to reduce ATM transaction frequency.
• Limit Unnecessary Transactions to avoid crossing transaction thresholds.

Final Advice

Consumers are encouraged to regularly consult with their banks for updated fee structures and choose accounts that best suit their banking habits. Being proactive and informed about these costs can make a significant difference in financial planning and day-to-day money management.