Bank of Baroda rolls out back charges after public outcry

Bank of Baroda is a public sector banking and financial services company in India. It is the third-largest public sector bank in India which currently serves 131 million people. The bank has 107 offices in 24 countries (excluding India) In fact, it happens to be one of the major in a number of countries including New York, Dubai, and Singapore. 

Bank of Baroda announced that they would not be charging for the bank’s basic services. This decision was made, on Tuesday, following a public outcry. In fact, the bank withdrew the decision to charge customers on any service, such as withdrawals or deposits a day after announcing it, due to a large discomfort among the customers. The reason behind this withdrawal of the former announcement was said to be the current condition due to the pandemic.

Bank of Baroda reported a total profit of 16.79 billion for the quarter that ended in September. This development occurred after the Ministry of Finance said that no charges would be allowed on any of the savings accounts such as the Jan Dhan accounts. The finance ministry said that while the charges are not increased BOB made certain other charges on some free cash deposits and withdrawals per month. This would go for any kind of accounts such as a cash credit account, regular savings account, or an overdraft account. However, according to the RBI guidelines, all banks including the private sector banks are allowed to levy some amount of service charge as long as it is acceptable and fair. 

Recently, Bank of Baroda sealed a 3-year sponsorship contract with badminton players P.V. Sindhu and K. Srinath. After the merger with Dena Bank and Vijaya Bank, it became the third-largest lender in India, behind SBI and Private Bank. 


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