A lot of developments are taking place in the banking space. Many new facilities have been introduced by the banks that have made banking an easier affair. Along with the improved facilities there are a few new penalties that the banks have started to levy in ensure that their margins do not get hurt in the scenario of continuously stiffening competition.

Many banks now levy penalty on duplicate statements or if the number of cash transactions exceeds a certain limit. There are several other charges that the customers have to bear while operating their bank account.

Banks are not even comfortable with the fact that customers maintain minimum balance in their accounts but do not operate it. Banks have to bear various charges for the maintained account but it does not bring any business to the banks. Hence, some banks even levy penalty on the non-operating accounts.

The deregulations of savings account rates by the Reserve Bank of India may lead banks to offer higher rate of interest to the customers. On the other hand it is also likely that the banks will start charging for the facilities that at present do not attract any extra charges.