In a move aimed at increasing its share of current and savings account (CASA) deposits, IDBI has done away with the concept of minimum balance on these accounts and has waived off most service charges except those pertaining to bounced cheques.
RM Malla, CMD of the bank said the move is aimed at improving low-cost deposits (savings and current account) which stand at 14% — probably lowest in the industry. IDBI has a low share of retail deposits as a large part of its balance sheet originated from the erstwhile Industrial Development Bank of India, which relied largely on wholesale funds.
Until now, IDBI was charging depositors fees in the range of ‘100 to ‘200 if the quarterly average balance fell below ‘5,000. In case of current account, the fee was ‘10,000.
The services on which the bank has waived off interbank charges include cash withdrawal from ATMs above ‘10,000 a month. Most banks charge in the region of ’10-20 for cash withdrawals above ‘10,000 if it is from another banks ATM.