PNB Announces New Charges: If you also have an account then know the important rules before October 1

Punjab National Bank (PNB) has announced significant changes to its savings account service charges, effective October 1, 2024. These revisions will impact various fees related to maintaining minimum average balances, issuing demand drafts, and more. Here’s a detailed look at what customers can expect.

Overview of Changes to PNB Savings Account Charges

As of September 4, 2024, PNB has decided to shift from a quarterly average balance (QAB) system to a monthly average balance (MAB) system. This change aims to simplify the banking experience for customers by making it easier to track their balances monthly rather than quarterly.

Minimum Average Balance Requirements

Under the new MAB structure, the requirements vary based on the type of area:

• Rural Areas: ₹500
• Semi-Urban Areas: ₹1,000
• Urban & Metro Areas: ₹2,000

Failure to maintain the required balance will incur charges based on the shortfall percentage:

• Rural:
  • Up to 50% shortfall: ₹50
  • Above 50% shortfall: ₹100
• Semi-Urban:
  • Up to 50% shortfall: ₹100
  • Above 50% shortfall: ₹150
• Urban & Metro:
  • Up to 50% shortfall: ₹150
  • Above 50% shortfall: ₹250

These adjustments are designed to encourage customers to maintain their balances and avoid unnecessary fees.

Revised Demand Draft Charges

PNB has also updated its charges for issuing demand drafts (DDs). The new rates are as follows:

• For all amounts: 0.40% of the DD amount, with a minimum charge of ₹50 and a maximum of ₹15,000.
• For DDs issued against cash (up to ₹50,000): Charges will be 50% above the normal rates.

Additionally, the fees for duplicate DDs, revalidating, or canceling a DD have been revised to ₹200 per instrument for each of these services.

Cheque Return Charges

The bank has revised its charges for cheque returns due to insufficient funds. The new fees are structured as follows:

• Savings Account: ₹300 per instrument
• Current Account/CC/OD:
  • ₹300 per instrument for the first three returns in a financial year
  • ₹1,000 per instrument from the fourth return onwards
  • ₹100 per instrument for reasons other than insufficient balance
  • No charge for technical faults or failures

This tiered structure aims to discourage frequent overdrafts while providing some leniency for first-time occurrences.

Locker Rent Charges

Changes have also been made to locker rent charges, which vary by location and size:

• Rural Areas:
  • Small: ₹1,250
  • Medium: ₹2,200
  • Large: ₹2,500
  • Very Large: ₹6,000
  • Extra Large: ₹10,000
• Urban & Metro Areas:
  • Small: ₹2,000
  • Medium: ₹3,500
  • Large: ₹5,500
  • Very Large: ₹8,000
  • Extra Large: ₹10,000

These adjustments reflect the bank’s efforts to align its services with market standards while ensuring that customers are aware of the costs associated with locker services.

Implications for Customers

These changes are significant for PNB customers, particularly those who may struggle to maintain the new minimum average balances. Customers are encouraged to review their account activities and plan accordingly to avoid incurring additional fees.

The shift from a quarterly to a monthly balance requirement may also affect how customers manage their finances, making it crucial for them to stay informed about their account status regularly.