« Top Headlines » Open DEMAT Account in 24 hrs  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80 «  Taxmen eye e-auction of seized property... New tax return form to make life 'saral'... » Passbooks to increase pvt, foreign bank costs October, 07th 2006 Private and foreign banks are unnerved by the Reserve Bank of Indias (RBI) directive to issue passbooks or account statements every month to all customers as they see a substantial increase in expenses. The banking regulator has stated that banks should not pass on the cost of providing passbooks or monthly statements to customers. Unlike public sector banks, which still continue with the age-old practice of issuing passbooks to every customer, private and foreign banks do not issue passbooks, but provide account statements every quarter. Customers are charged anywhere between Rs 100 and Rs 250 by these banks if a customer seeks monthly statements. Bankers, not wanting to be quoted, said passbooks are not something they would like to handle given the costs involved and sending monthly statements is a redundant exercise involving huge expense. According to industry estimates, the cost per transaction at bank branches ranges from Rs 40 to Rs 55 and, hence, these banks rule out getting back to the passbook culture. A senior private sector banker said the cost of sending one statement is Rs 12-Rs 15. If banks have to send statements every month, then the expenditure will increase three-fold to Rs 154-Rs 180 from Rs 48-Rs 60 per customer, which wipes out the gain on an account where the minimum balance of Rs 5,000 is just maintained. Banks have a 3 per cent margin (of Rs 150) on every account that just maintains Rs 5,000 minimum balance. But this gain fades considering the facilities provided by banks. Maintaining ATMs and air-conditioned branches involves huge cost. The cost per transaction ranges from Rs 18-Rs 24 at ATMs and Rs 40-Rs 55 at branches. RBI, in a circular, has asked banks to invariably offer passbook facility to all its savings bank account holders and the banks must issue monthly statement of accounts, in case the bank offers the facility of sending a statement of account and the customer chooses to get the statement. Customers have constant access to their account statements through the mini statement facility of ATMs, internet banking and 24 hour phone banking. Issuing a monthly statement then becomes quite redundant, a private sector banker said and also pointed out that all customers do not have monthly transactions and do not need or even ask for monthly statements. According to the retail head of a foreign bank, We will inform our customers that they can avail of monthly statements through our phone banking service or at our branches. If a customer requests that he/she wants monthly statements, then we will do that.