What changed
RBI has explicitly prohibited banks from charging different fees for the same service based on whether a transaction is done at a customer's home branch or a non-home branch. This follows the Damodaran Committee's recommendation and the Monetary Policy Statement of May 2013. Banks must now ensure uniform pricing for all services across all CBS-enabled branches.
What it means for you
Banks can no longer use 'home branch' status to justify higher charges at other branches for identical services. This levels the playing field for customers and forces banks to absorb or rationalize any cost differences in CBS operations. Lenders must review and revise their fee structures to eliminate any home/non-home branch discrimination, which may impact fee income from intersol charges.
What you must do
- Audit all current service charges to identify any home vs. non-home branch differentials and eliminate them immediately.
- Update your pricing policy to state clearly that all charges are uniform across all CBS branches for the same service.
- Communicate the revised uniform fee structure to all branch managers and customer-facing staff to ensure compliance.
- Ensure cash handling charges are treated separately and not bundled under intersol charges.
Who it affects
All scheduled commercial banks (excluding RRBs), Retail banking customers, Branch operations teams, Product and pricing teams
Does this circular apply to cash handling charges?
No, RBI has clarified that cash handling charges are not included under intersol charges and can be treated separately.
What if my bank currently charges a fee for a service at non-home branches but offers it free at home branches?
You must immediately make that service free at all branches. The circular mandates that if a service is free at the home branch, it must be free at non-home branches as well.
When does this directive take effect?
The circular was issued on July 1, 2013, and banks were expected to comply from that date. No grace period was provided.