Concerns expressed by the public over "unreasonable" levy of service charge by banks found mention in the annual credit policy of Reserve Bank, which has directed banks to share details of the collection with customers.The bank also announced setting up a working group comprising a nominee of Indian Banks' Association and representatives of customers to draft a scheme for reasonableness in bank charges and include the same in the Fair Practices Code.
The Monetary and Credit Policy 2006-2007
The FPC will be monitored by the Banking Codes and Standards Board of India. Besides, it has asked all banks to display and update, in their branches and websites, the details of the various service charges levied by them.
The details of such charges will have to be in a format approved by the central bank. The Reserve Bank will also place such details on the website, it stated in the Annual Policy Statement of 2006-07.
The decision follows several representations from the public with regard to the unreasonableness of bank charges.
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