RBI group report on bank charges in 10 days

A Reserve Bank of India (RBI) working group set up to formulate reasonable bank charges is likely to submit its report in the next 10 days.

"The report is nearing completion, and is likely to be submitted in the next 10 days," Kaza Sudhakar, member-secretary of the working group, told PTI.

Concerned over the unreasonable levy of service charges by banks, RBI constituted a five-member working group in May.

The group is headed by Banking Ombudsman, Mumbai and includes nominee of Indian Banks Association and representatives of customers. It was expected to submit its report by the end of July 2006.

RBI is working on prudent charges for various services amidst concerns from Members of Parliament that foreign banks were practising "hidden" policy of denying credit cards and loans to police, politicians and advocates.

Taking note of this, Finance Minister P Chidambaram told the Rajya Sabha recently that the issue will come under RBI scrutiny and strong action will be taken against them for violating the code of banking practice.