Banks have increased their service charges between April and October this year. With a 12 per cent tax on all services for which banks charge a fee, making a demand draft, transfer of funds, issuing a stop payment instruction will now become costlier.

Banks have, so far, increased their service charges by 10-20 per cent this financial year. State Bank of India has increased the charges for issuing MICR cheque book for savings account to Rs 3 per leaf. Though the bank gives a cheque book of 20 leaves free per savings account every year, it has made the cost of issuing additional cheque leaves same as that of issuing cheques for a current account.

The bank has also increased its fees for different attestation services. Photo attestation at SBI now costs Rs 100. It was Rs 50 a few months ago. Similarly, signature verification charge has also gone up to Rs 100 from Rs 50.

Bank of Baroda, which a few months ago would have charged Rs 30 for non-maintenance of quarterly average balance in a savings account, now charges Rs 50. And if it is a CBS branch (core banking branch), the charge is double — Rs 100 per quarter.

In fact, most of the public sector banks are charging a higher fee for non-maintenance of quarterly average balance in their CBS branches.

Moreover, after issuing the first ATM-cum-debit cards to their customers, banks are now gearing up to charge a renewal fee after the initial free period (three to five years depending on the issuer bank). Bank of Baroda proposes to charge Rs 100 per renewal of ATM-cum-debit card from January 1, 2009.