Many Banks, including nationalized Banks like SBI have started levying charges for SMS service from June. Considering Banks have pushed customers to avail of this service in the name of security, this is blatantly unfair. The charge in case of SBI is Rs.15/- per quarter. There are others that charges Rs.10/- to Rs.25/- per month.
As it is, there is the annual Debit card charges availed by most Banks. This again was thrust upon customers.
First there was the ATM card. Then came the ATM-cum-debit card. There are very few Banks which only have ATM cards. Be as it may be, why should there be an annual charge for it? Unlike credit cards which expire after a few years and are reissued, I have not seen debit cards being reissued. To add insult to injury, there is a service tax on the amount - what a service sir ji!
Talking about ways that Banks make money, here are a few that SBI uses. I came to know of this when I decided to transfer my account to a new SBI Branch that opened close to my home.
Branch transfer charge - charge to transfer your account from one branch to another. No change in account number, a couple of mouse-clicks on the computer - off goes Rs.100/- + service tax. One would have thought, the Bank would be happy to have a new customer in a new branch - one who stays close. But no, far from it.
Cheque book charge - except for the very first time that you open an account - you pay Rs.2/- per cheque leaf. Another Rs.100/- for a new cheque book.
I will write separately on what it takes to open a new locker - that is a racket in itself