Reserve Bank of India (RBI) has informed that banks have been advised to ensure that their branches invariably accept cash over the counters from all their customers who desire to deposit cash at the counters. Banks have also been advised to refrain from incorporating clauses in the terms and conditions which restricts deposit of cash over the counters. However, Indian Banks Association (IBA) had advised that banks may be levying charges when very large amounts are deposited across the counter as counting large quantities of cash and handling them have cost elements for banks.

With effect from September, 1999 banks have been given freedom to fix service charges for various types of services rendered by them. While fixing service charges, banks should ensure that the charges are reasonable and not out of line with the average cost of providing these services.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.-www.pib.nic.in