IDBI Bank has waived the need for minimum balance on its current and savings accounts and has also removed most of the service charges on these accounts. This move by the bank has been made in order to increase its share of CASA deposits.
The only services charges still remaining with these accounts are those related to bounced cheques.
According to RM Malla, CMD of the bank, this step has been taken by the bank in order to improve its low cost deposits. These deposits presently form 14% of the total deposits of the bank. The share of retail deposits of the bank is quite low as of now.
Till now the bank used to charge in the range of Rs 100 to Rs 200 in case the quarterly average balance dropped below Rs 5000 for savings account and Rs 10,000 in case of current accounts.
The bank has removed service charges on interbank transactions, ATM cash withdrawals etc.
The only charge that has still been maintained is penalty on bounced cheques. "It is an issue of governance and that is the only service for which the customer would be charged," said Mr Malla.
Charges have also been removed from services like demand draft (DD) issuances charges, DD cancellation charges, cash service charges (where customers are charged if they deposit a huge amount of cash in a branch), cheque book charges, stop payment charges, outstanding cheque collection charges, account statement charges, pay order charges, issuance of new card and standing instruction charges etc.