What are the principles to be followed by banks in order to ensure reasonableness in fixing and communicating service charges?
Banks are required to follow the following principles for ensuring reasonableness in fixing and communicating the service charges – (a) For basic services to individuals, banks should levy charges at rates that are lower than the rates applied when the same services are given to non-individuals. (b) For basic services rendered to special category of individuals (such as individuals in rural areas, pensioners and senior citizens), banks should levy charges on more liberal terms than the terms on which the charges are levied to other individuals. (c) For basic services rendered to individuals, banks should levy charges only if the charges are just and supported by reason. (d) For basic services to individuals, banks should levy services charges ad-valorem only to cover any incremental cost and subject to a cap. (e) Banks should provide to the individual customers upfront and in a timely manner, complete information on the charges applicable to all basic services. (f) Banks should provide
