Banking makes life easier, but sometimes customers are surprised by the charges that come with it. From account maintenance fees to cheque bounce penalties, banks levy charges to cover services. Understanding them helps you avoid unnecessary costs.
Common Banking Charges Explained Simply
Banks may deduct money for different services. One common fee is account maintenance, often linked to not maintaining the required minimum balance. ATM charges apply if you use ATMs beyond the free monthly limit or at non-home branches.
Cheque-related charges come into play when you issue stop-payment requests, return cheques, or order cheque books. Penalties for late payments, especially on credit cards and loans, are also common. These fees might seem small but add up if ignored.
Cooperative Banks vs. Commercial Banks
Not all banks operate the same way. Cooperative banks are owned by members and often cater to local communities, focusing on agriculture and small borrowers.
Commercial banks, like SBI or HDFC, serve a wider customer base and provide a full range of services from savings accounts to corporate loans. Cooperative banks may be more community-friendly, but commercial banks usually offer more stability, advanced digital services, and better reach.
Crossed Cheque vs. Account Payee Cheque
Cheques are still used in India, though less than before. A crossed cheque has two parallel lines on the top left, meaning it can only be deposited in a bank, not cashed directly. An account payee cheque goes one step further, it must be deposited into the payee’s specific account. This prevents misuse and ensures the money reaches the intended person.
Steps to Stop Cheque Payment
If you’ve issued a cheque but need to stop payment, you can request it online through net banking or mobile banking, or offline by visiting a branch. Banks charge a small fee for this, and it must be done before the cheque is cleared.
What Happens If a Cheque Bounces?
Cheque bouncing is serious in India. It can attract penalties, affect your credit score, and even lead to legal action under the Negotiable Instruments Act. To avoid it, always ensure you have enough balance before issuing a cheque.
Conclusion : Banking charges are not hidden tricks—they’re part of how banks provide services. But by knowing the common ones, choosing the right type of bank, and handling cheques carefully, you can manage your money smartly and avoid extra costs.
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