## Policy Summary: Earning of Banks Through Service Charges
This document summarizes the Indian Ministry of Finance's response to Lok Sabha Unstarred Question No. 1207, answered on July 28, 2025, regarding service charges levied by Public Sector Banks (PSBs) and Scheduled Banks.
**Service Charge Policy:** The Reserve Bank of India (RBI) empowers individual bank boards to prescribe service charges, provided these charges are reasonable and aligned with the average cost of service provision. Banks are instructed to publicly display service charge information on their websites and notice boards.
**Online Service Revenue:** The aggregate amount earned by PSBs through online services (merchant transactions via debit cards, internet/mobile banking, government/business transactions, forex transactions, fee payments, and payment services like IMPS/NEFT/RTGS) over the past five fiscal years is as follows:
* FY 2020-21: ₹365.03 Crores
* FY 2021-22: ₹466.57 Crores
* FY 2022-23: ₹485.28 Crores
* FY 2023-24: ₹512.00 Crores
* FY 2024-25: ₹510.05 Crores
**Overall Non-Interest Income:** The non-interest income earned by PSBs through all services (online and bank networks) has increased with a Compound Annual Growth Rate (CAGR) of 9.15% over the last five fiscal years (FY 2019-20 to FY 2024-25).
**INR Stabilization:** The RBI maintains that the value of the Indian Rupee (INR) is market-determined and does not adhere to a specific target level or band. The RBI actively monitors the foreign exchange market and intervenes to manage excessive volatility. RBI's foreign exchange market interventions from September 2024 to April 2025 are detailed as below:
| Month | Net sale (purchase +) of equivalent USD in USD Million | Net sale (purchase +) of equivalent INR in Crores |
|---------------|--------------------------------------------------------|---------------------------------------------------|
| September 2024| 9,639 | 80,549 |
| October 2024 | 9,275 | 77,969 |
| November 2024 | 20,228 | 1,70,630 |
| December 2024 | 15,150 | 1,28,753 |
| January 2025 | 11,139 | 95,388 |
| February 2025 | 1,621 | 14,024 |
| March 2025 | 14,355 | 1,24,586 |
| April 2025 | 1,660 | 14,635 |
**Source:** RBI
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Department of Financial Services: A department under the Ministry of Finance, Government of India.
Lok Sabha: The lower house of the Parliament of India.
T Sumathy Alias Thamizhachi Thangapandian: A member of parliament who raised a question in the Lok Sabha.
D M Kathir Anand: A member of parliament who raised a question in the Lok Sabha.
Pankaj Chaudhary: The Minister of State for Finance who provided the answer to the questions.
Reserve Bank of India (RBI): The central bank of India.
Indian Rupee (INR): The official currency of India.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1207
ANSWERED ON MONDAY, JULY 28, 2025/SRAVANA 6, 1947 (SAKA)
Earning of Banks through Service Charges
1207. DR. T SUMATHY ALIAS THAMIZHACHI THANGAPANDIAN:
THIRU D M KATHIR ANAND:
Will the Minister of Finance be pleased to state:
(a) whether the Public Sector Banks and Scheduled Banks are charging money for various services
rendered to customers for both online services and through Bank networks throughout the
country;
(b) if so, the details thereof and the total amount earned by Banks through their online services
during the last five years;
(c) whether it is true that the steep rise in the income earned by the Banks for both online services
and through Bank networks throughout the country and if so, the details thereof; and
(d) whether the Government has utilised its Forex and gold reserves to stabilize the value of INR
against US Dollar and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) As per the Reserve Bank of India’s (RBI) Master Circular on ‘Customer Service in Banks’, the
Board of respective banks are empowered to prescribe service charges on various services offered
by them, subject to these charges being reasonable and not out of line with the average cost of
providing these services. Further, banks have also been advised to display the information relating
to service charges on their respective websites and notice boards to enable customers to obtain
such information;
(b) & (c) The aggregate amount earned by the Public Sector Banks (PSBs) through their online
services (Merchant transactions through Debit cards & Internet / Mobile Banking, GovernmentBusiness transactions, Forex transactions, Fee payment, Payment Services-IMPS/NEFT/RTGS)
during the last five years is detailed as under:
Sr.No. FY Amount in ₹ Crores
1. 2020-21 365.03
2. 2021-22 466.57
3. 2022-23 485.28
4. 2023-24 512.00
5. 2024-25 510.05
Further, the non-interest income earned by the PSBs, through all services provided, including,
online mode and bank networks throughout the country has increased with a Compound Annual
Growth Rate (CAGR) of 9.15% during the last 5 years (FY 2019-20 to FY 2024-25).
(d) According to RBI, the value of the Indian Rupee (INR) is market-determined, with no target or
specific level or band. The RBI regularly monitors the foreign exchange market and intervenes in
situations of excess volatility. RBI's foreign exchange market interventions from September 2024
to April 2025 in terms of USD and INR has been given below:
Month Net sale (-) / purchase (+) of ₹ equivalent (₹ Crores)
USD in USD Million*
September 2024 9,639 80,549
October 2024 -9,275 -77,969
November 2024 -20,228 -1,70,630
December 2024 -15,150 -1,28,753
January 2025 -11,139 -95,388
February 2025 -1,621 -14,024
March 2025 14,355 1,24,586
April 2025 -1,660 -14,635
*Source: RBI
*****