Introduction
Opening a bank account in India is considered safe and convenient. But what many people don’t know is that banks often quietly deduct charges from your account for services you didn’t even request.
In 2025, with digital banking on the rise, these charges are increasing in number and amount. You may not notice ₹10–₹50 deductions every few days, but over time, they eat into your savings.
Let’s uncover the Top 10 Hidden Bank Charges in India that most banks don’t advertise — and show you how to avoid or reduce them.
🔟 Hidden Bank Charges in India (2025)
1. Minimum Balance Penalty
Most savings accounts have a monthly average balance (MAB) requirement. If you fail to maintain this, banks automatically deduct ₹100–₹600 as penalty.
📌 Examples:
- SBI: ₹10 to ₹15 + GST
- HDFC: ₹150 to ₹600
- ICICI: ₹100 to ₹500
✅ Avoid it by:
Opting for zero balance accounts or setting reminders to keep your balance above the required limit.
2. ATM Withdrawal Charges
After the first 3-5 free ATM transactions, every additional transaction (withdrawal or even balance check) is charged at ₹20–₹25 + GST.
📌 Note: This includes own-bank ATMs too if you cross the limit.
✅ Avoid it by:
Using UPI, NetBanking, and keeping track of ATM usage.
3. SMS Alert Charges
Most banks charge ₹15–₹25 per quarter for SMS alerts, even if you rarely use them.
✅ Avoid it by:
Opt for email alerts or use bank apps for free push notifications.
4. Debit Card Annual Fees
Even if you don’t use your debit card much, banks charge annual fees between ₹100 to ₹500, depending on card type.
📌 Premium cards (e.g., Platinum, RuPay Select) charge even more.
✅ Avoid it by:
Requesting a basic RuPay card, which is often free for Jan Dhan and basic accounts.
5. Cash Deposit & Withdrawal Limits
Banks limit free cash transactions (both deposits and withdrawals). After 3–5 times/month, you may be charged ₹50–₹150 per transaction.
📌 HDFC & ICICI have strict limits on non-home branches too.
✅ Avoid it by:
Doing online transfers (NEFT, IMPS, UPI) instead of physical cash.
6. Cheque Bounce Penalties
If your cheque bounces due to insufficient funds or signature mismatch, you may be charged ₹150 to ₹500 per bounce, plus legal consequences in some cases.
✅ Avoid it by:
Double-checking balance and signatures before issuing cheques.
7. NEFT / RTGS / IMPS Fees (If done via branch)
While online NEFT/RTGS/IMPS is mostly free now, branch-based transactions still carry charges:
- NEFT: ₹2–₹25
- RTGS: ₹25–₹50
- IMPS: ₹5–₹25
✅ Avoid it by:
Always use internet banking or mobile apps to make transfers.
8. Account Closure Charges (within 6 months)
If you close your bank account within 6–12 months of opening it, banks charge ₹150–₹500 as closure fees.
✅ Avoid it by:
Keeping accounts open for at least 1 year, or choosing banks that waive this fee.
9. Dormant Account Charges
If there’s no activity in your account for over 12–24 months, banks may mark it inactive or dormant and charge ₹100–₹250 per year.
✅ Avoid it by:
Doing at least one transaction (deposit/withdrawal) every 6–12 months.
10. Email Statement Charges (Yes, really!)
Some banks charge ₹25–₹50 per email statement if you request it through customer care or printed format.
✅ Avoid it by:
Accessing e-statements via internet banking for free.
💡 Bonus Hidden Charges to Watch
| Service | Typical Charge Range |
|---|---|
| PIN Re-issuance for debit card | ₹50–₹150 |
| Cheque book beyond free limit | ₹3–₹5 per leaf |
| ECS/NACH failure | ₹200–₹400 |
| International card usage | 3.5% + GST |
| Duplicate passbook or statement | ₹100–₹200 |
💼 Hidden Charges at Private vs. PSU Banks
| Feature | Private Banks (HDFC, ICICI) | Public Banks (SBI, BOB) |
|---|---|---|
| ATM Charges | Higher | Lower |
| SMS Alerts | Charged | Sometimes free |
| Cash Limit | Stricter | More relaxed |
| Account Maintenance | Higher | Lower or Zero |
| Transparency | Low (in T&C) | Moderate (govt control) |
❓FAQs – Bank Charges in India
Q1. Can I get a refund for wrongly deducted bank charges?
Yes. Contact customer care or visit your home branch and file a request. Refunds are possible in case of bank error.
Q2. Are bank charges the same for senior citizens?
No. Some banks offer waivers on SMS alerts, cheque books, and minimum balance for senior citizens.
Q3. Can I file a complaint about unfair bank charges?
Yes. First escalate to the bank’s grievance cell. If unresolved, file a complaint with the Banking Ombudsman or RBI CMS portal.
Q4. Which Indian banks have the lowest hidden charges?
Public sector banks like SBI, Union Bank, and Canara Bank generally have lower fees than private banks.
Q5. Is there a way to see all charges for my account?
Yes. Visit your bank’s official website → Go to “Schedule of Charges” section → Download PDF for full list.
🛡 How to Protect Yourself from Hidden Charges
- 🟢 Read the Terms & Conditions before opening any account
- 🟢 Regularly check your bank statements for deductions
- 🟢 Prefer digital banking (most services are free online)
- 🟢 Choose zero balance or salary accounts
- 🟢 Always ask for a Schedule of Charges from the branch
✅ Conclusion
Banks in India have become smarter — but so should you. These hidden charges often go unnoticed, especially when deducted in small amounts. But over the year, they can cost you thousands of rupees.
Being aware of these fees in 2025 helps you choose better banking options, save more money, and avoid frustrating surprises.