Summary of this article
Auditing you bank account statement might not be seem like something of utmost importance, but doing so can keep you away from paying unnecessary charges
Small fees nibble away at your savings each month, and often go unnoticed. They might be ATM fees, maintenance fees for your debit card, duplicate statement fees or service fees for features you didn't explicitly choose. Individually, they don't sound like much, but in total, they can cost you money over time. That is why one or two checks of your bank statements every year is an intelligent approach to finding and preventing such secret charges.
Understand Common Bank Charges
One of the most frequent fees arises from ATM usage. According to Reserve Bank of India (RBI) guidelines effective May 1, 2025, customers receive five free transactions per month at their own bank's ATMs, which includes both financial (cash withdrawal) and non‑financial transactions (balance enquiry, PIN change).
For ATMs of other banks ("off‑us" transactions), customers in metro cities are entitled to 3 free transactions per month, while those in non‑metro areas get five free transactions. Once these free limits are exceeded, banks may charge up to Rs 23 per transaction (plus applicable taxes) across ATMs and Cash Recycler Machines (CRMs), though cash deposits at CRMs remain free.
On failed ATM transactions (technical errors or declined cards), banks are required to re‑credit your account within five calendar days under RBI rules.
Besides ATM costs, banks may debit small amounts for SMS alerts (often Rs 15–25 per quarter), passbook fees, statement copies, cheque‑book issuance or debit card renewals, sometimes without overt notification.
How to Start Auditing Your Statements
Begin by downloading your account statements for the last 6 to 12 months via net banking. Look for debits that don't correspond to payments you made or transfers you authorised. These typically include fees and service charges.
Then check your bank's published "Schedule of Charges" on its website or branch. Compare each identified fee in your statement to what the bank is officially allowed to levy. If you find charges beyond the permissible limits (e.g., more than Rs 23 per ATM transaction or unrequested services), raise a formal complaint via net banking, mobile app, or at the branch.
If the bank does not settle the matter within 30 days, you can escalate to the RBI Ombudsman via its Complaint Management System (CMS).
After Your Audit
Here are some of the factors that you need to take into account after you have completed your audit:
Consider switching to a zero‑balance or basic savings account to reduce or eliminate maintenance fees. Some Basic Savings Bank Deposit Accounts (BSBDA) may offer even more fee relief.
Monitor ATM usage via your bank's mobile app to avoid exceeding free limits.
Consolidate your transactions across fewer accounts to avoid duplicate fees and simplify tracking.
Spending an hour or two every few months going over your statements to end up saving Rs 500 to Rs 1,000 per year, or per account. It allows you to have more control over your money, prevents unwanted charges, and hones overall financial literacy.
