Homeeconomy News

Banks may start charging users for ATM transactions, cheques and cards

Banks may start charging users for ATM transactions, cheques and cards

Banks may start charging users for ATM transactions, cheques and cards
Profile image

By CNBC-TV18 Apr 24, 2018 10:57:37 AM IST (Published)

The tax department has asked country’s top lenders to pay tax on free services they provide to customers maintaining minimum balance.

Soon banks may start charging users for ATM transactions, cheques and cards, said a report in The Economic Times.

Recommended Articles

View All

According to the report, this development may take place as the tax department has asked country’s top lenders to pay tax on free services they provide to customers maintaining minimum balance.
An official was quoted saying in the report that “show cause notices have been issued by the Directorate General of Goods and Services Tax Intelligence (DGGST) and is likely to be made on other banks as well. The tax will be levied for the last five years, the period for which past service tax cases can be opened.”
The amount, which as per the report is calculated by taking into account charges recovered by banks from customers not maintaining a minimum account balance could range to billions.
The decision has not gone down well with banks, the report stated. They are likely to contest the department claims and take up the issue with authorities. The report also added that the burden will also fall on customers as it's unlikely that the banks will take full responsibility.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!