Sir — It is good news that the Reserve Bank of India has asked banks not to levy penalty on customers who do not maintain a minimum balance in basic savings bank accounts. RBI Governor Raghuram Rajan’s view that banks should not take undue advantage of their customers, is welcome.
Banks are often found wanting in rendering customer-friendly services to borrowers. When loans are given, processing charges are debited to the account of the loanee.When banks recover interest from the loanees, which is generally at least two per cent above the interest given to the customers for their deposits in banks, where is the need to charge processing fees for giving loansIJ In addition to charging processing fees when loans are given, banks often insist that the borrowers take insurance policies. Banks should be content with the interest they charge on the money they loan to the people.