Lesser-Known Banking Charges We Bet You Didn’t Know Before!

Mumbai-based Amit Singh pays home loan EMI on the 10th of every month. The money gets debited automatically from his savings account. But last month, the transaction failed due to the insufficient balance in his account. He was shocked as he thought he had a sufficient amount in the bank account. When he went to the bank to inquire about the same, he was told that the debit card fee was charged from his savings account on the 9th, and now he has to pay the failed transaction fee as well. He told the bank or financial institution representative that he was not aware of the debit card fee. Unfortunately, he was not left with any option other than paying these banking charges. 

There are many people like Amit who are not aware of several such banking charges. As an account holder, it is very important to know that banks levy various charges for the services they provide to their customers, & knowing about the same helps you to avoid paying the penalty. 

However, banks also offer some free services. For instance, if you have a savings account in Indian Overseas Bank and you want to check your account balance for free, then you just need to dial the IOB balance check number to check the same. Apart from that, banks also provide some free services such as mobile banking, internet banking, etc.

But in this article or blog, we will talk about the various banking charges that every account holder must know.

  1. Non-maintenance of Monthly Average Balance Charges:

Most banks ask saving account holders to maintain an average monthly balance in their account, whereas a few other banks ask their customers to keep a fixed quarterly monthly balance in their bank accounts. Please note that the minimum balance requirement varies from one bank to another.

If you don’t maintain the minimum average balance in your savings account, banks are bound to levy a penalty for that. These charges usually range from Rs.100 to Rs 600.

So, if you want to avoid these charges, then make sure you keep checking your balance every fortnight to see your balance isn’t down the minimum balance. If you are an Indian Overseas bank account holder, then you can simply dial the IOB balance check number to know your account balance for free of cost. Other banks also provide similar services free of cost. 

  1. Paper Statement Charges

Nowadays, when the majority of people check their bank statements online, it is not surprising that most banks charge you money for printing and sending you a hard copy of those bank statements. That’s why the best way to check your bank statement is online. Some banks like the Bank of Baroda provide their customers with a toll-free Bank of Baroda mini statement number. With this, customers can view their mini statement instantly by just giving a missed call on the Bank of Baroda mini statement number from their registered mobile number.

  1. Cheque Bounce Charges

If you’ve deposited or issued any cheque and it got bounced, the bank will levy charges for the same. These charges might range from Rs. 200 – Rs. 1000 depending on the bank as well as the reason why the cheque was not cleared.

  1. Fund Transfer Charges

While banks no longer levy on RTGS & NEFT transactions, IMPS (Immediate payment service) transactions are still chargeable. However, the fee mainly depends on the amount being transferred through the bank account. It typically ranges from Rs 1 to Rs. 25. Well, you can check how much amount has been deducted from your account for free by checking the balance online. For example, Bank of Baroda saving account holders can give a missed call to the Bank of Baroda mini statement number from their registered mobile number. Through the mini statement, they can check how much amount is charged for an IMPS transaction.

  1. SMS Alerts Charges

Most banks provide the facility of customized SMS alerts as well. To enjoy this facility, the savings account holder might need to pay some charges. With the SMS alert facility, customers can avail all details about their savings account like deposits, ATM withdrawals, and also bank balance. However, banks like Indian overseas bank also provide a toll-free IOB balance check number.

  1. Foreign Transaction Charges

An international transaction charge is imposed by a bank on a transaction made overseas or with an international merchant. This fee usually ranges from 1 to 3% of the transaction value. Moreover, you can check the cash advance fee in your account statement if you do this transaction. Banks like the Bank of Baroda also provide the facility to their customers to check their transactions for free. All they need to do is call the Bank of Baroda mini statement number.

  1. Debit Card Charges

Every other bank nowadays provides ATM- cum debit card to their customers through that, and anyone can withdraw their cash anytime they want, transfer the money via net banking, do bill payments, etc. To give these services, banks charge a certain fee on their debit card, which usually varies from one bank to another. 

  1. Issuing duplicate passbook

Whenever we open a bank account at any bank, we get a free passbook from them. It is important as it helps us keep track of debit and credit transactions. However, in case you lost one due to some reason and apply for the duplicate passbook, the bank is liable to charge you for that. Just like any other charge, it will also vary from one account to another. 


The aforementioned fee & charges vary across banks as well as account types. Before opening a savings account in India in any bank, make sure you carefully go through the schedule of applicable charges. Also, keep checking your balance from time to time to ensure that there are no unwanted charges levied on your account. To do that, banks like IOB have an IOB balance check number which helps customers to check their balance for free.

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