Hidden Bank Charges: How to Spot Them and Get a Refund

"There's a ₹590 debit in my statement and I have no idea what it is." That feeling is common, and the fix is usually straightforward: match the debit's narration to your bank's published schedule of charges, check whether it breaks an RBI rule, and if it does, or if it simply was not disclosed to you, ask for a reversal in writing. Many charges are legitimate but avoidable. Some are wrong, and those you can get back.

This guide shows how to decode common charges, the RBI rules that limit them as of October 2026, a worked example of how small debits add up, and a ready-to-send reversal request.

Step 1: Identify the charge

Open your statement for the last six to twelve months and filter debits that are not payments you made. Charges usually have short narrations. Our guide on how to read a bank statement explains the codes in detail.

Every charge should appear in the bank's schedule of service charges, which banks are required to publish on their websites and display at branches.

Step 2: Check it against RBI rules

Here are the rules most often broken, all as of October 2026.

Minimum balance penalties

RBI's instructions on penal charges for non-maintenance of minimum balance say:

• the bank must notify you by SMS, email or letter when your balance falls short, and give you one month to restore it before charging;
• the charge must be proportional to the shortfall, for example a percentage of the gap, not a flat penalty regardless of how small the shortfall is;
• the penalty must not push your account into a negative balance;
• no penalty may be charged on an inoperative account (no customer transaction for over two years).

For a detailed walkthrough, see our guide on minimum balance charges disputes.

Basic savings bank deposit (BSBD) accounts

Under RBI's revised directions effective 1 April 2026, BSBD accounts have no minimum balance, and come with a free ATM-cum-debit card with no issuance, renewal or annual fee, at least 25 free cheque leaves a year, free internet and mobile banking, unlimited free deposits and at least four free withdrawals a month. Digital payments such as UPI, NEFT, IMPS and card purchases do not count towards the four withdrawals. You can ask your bank to convert an existing savings account into a BSBD account if the features suit you.

ATM and digital transfer charges

• ATMs: at least five free transactions a month at your own bank's ATMs, and three at other banks' ATMs in metro centres (five in non-metro centres). Beyond that, banks may charge up to ₹23 per transaction from 1 May 2025, plus taxes.
• NEFT: online NEFT is free for savings account holders since 1 January 2020.
• UPI: person-to-person UPI payments are free for customers. A proposed merchant fee on some larger merchant payments has been deferred by NPCI as of October 2026, and in any case it falls on merchants, not on you.

Step 3: Ask for a reversal

1. List each disputed charge with date, amount and narration.
2. Find the rule or disclosure gap: no notice, not in the schedule, wrong account type, inoperative account, or a duplicate debit.
3. Raise a complaint through net banking, the app's complaint section, email or at the branch. Ask for a reference number.
4. If the charge is valid but you were unaware, you can still ask for a one-time goodwill reversal. Banks often agree for long-standing customers, especially for first-time charges.
5. Ask the bank to change what caused it: switch off paid SMS alerts if you use app notifications, or move to an account type that suits your balance.

Ready-to-copy reversal request

Subject: Request for reversal of charges on account ending [last 4 digits]

Dear Sir/Madam,

The following charges have been debited from my account:

1. [date] – [narration] – ₹[amount]
2. [date] – [narration] – ₹[amount]

[Choose the reason that applies:]
- I did not receive any notice of the minimum balance shortfall and the
  one-month period to restore it, as required by RBI's instructions.
- The charge was levied while the account was inoperative.
- The charge has pushed my savings account into negative balance.
- This charge is not mentioned in your published schedule of charges.
- This is a duplicate of a charge already levied on [date].

Please reverse ₹[total] along with the GST charged on it, and confirm in
writing. If this is not resolved within 30 days, I will approach the RBI
Ombudsman.

Name:
Customer ID:
Registered mobile:

Worked example: how small charges add up

Neha has a regular savings account with a ₹10,000 average balance requirement. Over one year, these charges appear (illustrative amounts; check your bank's schedule):

If two of the three minimum balance penalties were charged without the required notice, she can ask for 2 × ₹354 = ₹708 back as a matter of rule. If she then moves to a zero-balance BSBD account, which may suit her if she mainly uses UPI and digital payments, the debit card fee and minimum balance penalties disappear, saving roughly ₹295 + ₹1,062 = ₹1,357 a year.

Put another way, ₹1,590 a year is what about ₹23,000 would earn in a fixed deposit at an illustrative 7% (₹23,000 × 7% = ₹1,610). You can test your own numbers with the FD calculator.

Where to complain

The Reserve Bank – Integrated Ombudsman Scheme, 2026, in force from 1 July 2026, covers deficiencies in service such as levying charges without notice or in breach of RBI instructions. Filing is free, and the Ombudsman can award compensation of up to ₹3 lakh for time, expenses and harassment in addition to the amount in dispute. If the bank still does not help, our guide on what to do when the bank is not resolving your complaint covers the escalation in detail.

What not to do

• Do not ignore small recurring debits. They are easiest to dispute within a few months, while records are fresh.
• Do not close the account in anger before getting the charges reversed. Closure can trigger its own charges; see bank account closure problems.
• Do not call phone numbers from search results for "charge refunds". Use the bank's official channels.
• Do not share OTPs or card details with anyone offering to get charges reversed.
• Do not assume every insurance debit is a scam. PMJJBY and PMSBY premiums are legitimate if you enrolled; if you did not, ask the bank for the enrolment form and request cancellation and refund.

Key takeaways

• Match each unexplained debit to the bank's published schedule of charges.
• Minimum balance penalties need prior notice and a one-month window, must be proportional, cannot create a negative balance and cannot be charged on inoperative accounts.
• BSBD accounts now carry no minimum balance, a free debit card and free digital banking as of October 2026.
• Ask in writing for reversal, citing the rule or the missing disclosure, and include the GST.
• Escalate to the grievance officer, then the RBI Ombudsman at cms.rbi.org.in after 30 days.