ICICI Bank Revises Charges on Failed Transactions: What You Need to Know
ICICI Bank, one of India’s leading private sector banks, has recently revised its charges on failed transactions. The revised charges aim to deter customers from making transactions that may not have sufficient funds, thereby reducing the risk of bounces and subsequent penalties. In this blog post, we will break down the new charges and what they mean for ICICI Bank customers.
ECS/NACH Debit Return
The most significant change is the introduction of a ₹500 penalty for every ECS/NACH debit return, limited to three times per month. ECS (Electronic Clearance System) and NACH (National Automated Clearing House) are electronic payment systems used for periodic payments, such as salary, insurance premiums, and utility bills. When a customer’s account does not have sufficient funds to honor an ECS/NACH debit, the transaction is returned to the payer’s bank, and a penalty is imposed.
Outward Cheque Bounces
Outward cheque bounces, where a customer’s cheque bounces due to insufficient funds, will incur a penalty of ₹200. This is a relatively moderate penalty compared to other banks, which may charge upwards of ₹500 or more for similar transactions.
Inward Cheque Bounces
Inward cheque bounces, where a customer’s cheque is deposited into their account but bounces due to insufficient funds, will incur a penalty of ₹500 for financial reasons and ₹50 for non-financial reasons. The financial reasons may include insufficient funds, while non-financial reasons may include errors in the cheque processing system.
Failed ATM or POS Transactions
Failed ATM or POS transactions due to insufficient funds will attract a penalty of ₹25 per instance. This penalty will be applicable for transactions made using ICICI Bank’s debit cards or credit cards.
Why the Revisions?
The revised charges are aimed at encouraging customers to maintain a minimum balance in their accounts and to avoid transactions that may not have sufficient funds. By imposing penalties for failed transactions, ICICI Bank hopes to reduce the risk of bounces and subsequent delays in payments.
What Does This Mean for ICICI Bank Customers?
The revised charges may have a significant impact on ICICI Bank customers who are not careful about their account balances or who make frequent transactions. The penalties can add up quickly, leading to additional expenses for customers.
To avoid these penalties, ICICI Bank customers should ensure that they maintain a minimum balance in their accounts, monitor their account activity regularly, and avoid making transactions that may not have sufficient funds. Customers should also consider setting up overdraft protection or linking their accounts to avoid bounces.
Conclusion
ICICI Bank’s revised charges on failed transactions aim to promote responsible banking practices and reduce the risk of bounces. While the penalties may seem steep, they are a necessary step towards ensuring that customers maintain a minimum balance in their accounts and avoid transactions that may not have sufficient funds. By being aware of the revised charges, ICICI Bank customers can take steps to avoid these penalties and maintain a healthy banking relationship.
Source:
https://thecsrjournal.in/opening-an-icici-account-be-ready-to-maintain-rs-monthly/
