Hidden Bank Charges from August 15: Know How Banks Are Deducting Money from Your Account

Do you believe your bank offers free services? Think again. While bank executives often promise “free” facilities, the reality is quite different. From August 15, 2025, managing your bank account will become costlier as several commonly used services will no longer be free. Most leading banks in India—including SBI, HDFC, ICICI, and Axis Bank—have either reduced the free usage limits or introduced new charges across various services.

These changes will directly affect millions of customers who rely on basic banking operations such as ATM transactions, IMPS transfers, SMS alerts, cash deposits, and passbook updates.

🔍 What’s Changing from August 15, 2025? 1. Passbook Updates No Longer Free

Updating your passbook at the bank branch may now come with a fee. Some banks will charge you after a certain number of free updates each quarter.

2. ATM Withdrawals Getting Costlier

ATM usage beyond the bank's free limit will now cost more. For instance:

• Cash withdrawal charge: ₹23 + GST per transaction beyond free limit

• Applicable at both own-bank and other-bank ATMs

3. IMPS Transactions Now Chargeable

India’s most used fund transfer service—IMPS (Immediate Payment Service)—will soon come at a price.

• SBI has officially announced IMPS transaction charges based on the amount sent.

• Other banks are expected to follow with similar slabs.

4. SMS Alert Charges

Customers will now be charged a fixed annual or quarterly fee for SMS alerts, even for low-balance or credit/debit messages, which were earlier considered essential notifications.

5. Cheque Book Limitations

Banks are also reducing the number of free chequebooks issued per year. After the limit is crossed:

• Additional cheque books may cost ₹40–₹75 per booklet, depending on the bank.

6. Cash Deposit Charges

Depositing money in your bank account may also attract fees:

• Free cash deposits are limited per month.

• After that, charges can range from ₹50 to ₹150 per transaction.

🏦 Why Are Banks Implementing These Charges?

Banks justify these fees as part of their operational cost recovery strategy. With increasing digitalization, they aim to discourage unnecessary visits to branches or usage of physical banking tools. However, for the average customer, this means higher account maintenance costs.

💡 Tips to Avoid Extra Charges

• Track your ATM usage to stay within free limits.

• Use mobile or internet banking for fund transfers to avoid IMPS fees.

• Opt for email alerts instead of SMS where possible.

• Use UPI for payments—currently still free across most banks.

• Maintain required average balance to avoid non-maintenance penalties.

⚠️ Transparency Still a Concern

One of the biggest issues with these charges is lack of transparency. Many customers are not adequately informed about revised fees, which often appear as “hidden deductions” in bank statements. It's essential to regularly check your account activity and read your bank's latest service charge circular.

📌 Final Takeaway

From August 15, 2025, banking services that were once considered standard and free will now add to your monthly expenses. While digital banking may help avoid some of these charges, it's more important than ever to stay informed. Make sure to read the terms and service fee guidelines provided by your bank—because in today’s banking world, almost nothing comes free.