Ministry of Commerce and Industry have released data which reveals that the costs of banking services have increased more than 22 percent from 2004-05 to 2011-12. The data shows that the costs have risen for services like ATM transactions, processing fees for accepting deposits, processing fees of loans, issue of demand draft, cheque and bill collection and foreign exchange services.
The data reveals that these are the services which generate a large amount of revenue for the banks. It shows that these costs increased from 2004-05 to 2008-09. In the financial year 2008-09 these costs declined owing to the global economic recession. Then again banking costs saw a rise till the year 2010-11, after which they slid marginally.
The data was compiled by the banking regulator, RBI, based on the responses of about 21 banks, out of which 13 were public sector banks, 4 were private sector banks, 2 fore4ing banks, one a cooperative bank and one a regional rural bank.