IDBI CASA Bank Account with NO CHARGES

by Gopal Gidwani on September 5, 2010 · 32 comments

in Others,Uncategorized

Bank Savings Account with NO CHARGES

Introduction
Imagine a Bank Savings Account which comes with facilities like no Minimum Amount Requirement to Open a new Account, No Monthly/Quarterly Minimum Balance Requirement, No limit on number of Monthly Free ATM Transactions (including other banks ATM usage), No Annual Fees for Debit Card, No Charges for Cheque Book, Free Demand Drafts and Pay Orders, Free Statement / Passbook Facility, Free RTGS/NEFT Facility, Free Cheque Stop Payment Facility, Free Internet, Mobile, Phone and ATM Banking and a list of other free services. You must be wondering that we are joking. How can a bank offer all these services free of cost? Sounds unbelievable or too good to be true right? But IDBI Bank has exactly done the unbelievable. IDBI Bank has waived off the charges on a whole host of services for its Current Account / Saving Account (CASA) customers. It has done away with lot of charges for its CASA Customers since 1st September 2010. So let us see which are these services that IDBI Bank is offering its customers free of cost?

 Free Services on Savings Accounts
From 1st September 2010 IDBI Bank has waived off charges on different services for its current and savings account holders. Most of these are frequently used services by bank customers for which other public sector and private sector banks are charging their customers. As per the bank website the list of services for which IDBI Bank has waived off charges for Super Savings Account is as follows:

  1. Account Opening Amount: A new account can be opened with IDBI Bank with any amount ranging from Rs 0 (zero) to less than Rs 50,000. Normally for new regular savings account banks ask the customer for an account opening deposit of anywhere between Rs 1000 to Rs 10000.
  2. The annual fee for the international Debit cum ATM Card is NIL.
  3. The bank will also issue an additional card per account (in case of joint account) free of cost.
  4. Services like replacement of damaged / stolen / lost card / re-generation of pin are free of cost.
  5. Domestic / International ATM transactions are free. The bank doesn’t charge for other banks ATM usage. Also there is no cap / limit on the number of free ATM transactions of other Bank ATMs.
  6. Cheque book facility is free. The bank will provide local / multicity (At-Par) cheque book with the account
  7. The bank will provide quarterly statement for existing customers free of cost. For new customers passbook will be issued free of cost.
  8. The bank will provide monthly statement by email free of cost
  9. The customer can request for a duplicate statement at the branch free of cost. For this other banks normally charge in the range of Rs 25 to Rs 100 for duplicate statement at the branch.
  10. Duplicate passbook will be issued free of cost.
  11. The customer can also request for duplicate statement through Phone Banking or ATM free of cost
  12. The account can be closed by the customer free of cost. Some banks charge for account closure if the account is closed within a specified time period of opening of the account. For example some banks charge if the account is closed within 6 months or 1 year.
  13. The standing instruction facility is free of cost
  14. The customer can ask for a Balance Certificate or Interest Certificate or Signature Verification certificate free of cost
  15. The foreign inwards remittance certificate is free of charge
  16. The bank will issue Demand Drafts or Pay Orders free of cost. For this service upto a certain amount banks charge a fixed amount. Above a certain amount banks charge on a per thousand rupees basis.
  17. The bank will issue foreign currency demand drafts / international money orders free of cost.
  18. If a customer wants to cancel a pay order or demand draft (domestic or international); there will be no charges for it
  19. RTGS (Real Time Gross Settlement) facility and NEFT (National Electronic Fund Transfer) Facility will be offered free of cost
  20. Any Branch Banking: Any branch cheque deposits and account to account transfers will be free of cost
  21. Any Branch Banking: Cash deposits will be without any service charges
  22. Any Branch Banking: Cash withdrawal (done by self) will be free of cost
  23. If a customer wants to give instructions for stop payment of a cheque, there will be no charges for it.
  24. If a customer wants to request old records / copies of paid cheques; he can do so without any charges
  25. Banking through alternate channels like Internet / Mobile / Phone and ATM Banking is free of cost.

So that was the long list of services for which IDBI Bank has waived off service charges for its CASA Customers. These services are normally charged for by other private sector and public sector banks. The charges collected from these services form an important source of fee income of a bank. One of the important charges that IDBI bank has kept out of the free service is the return of a cheque or ECS (Electronic Clearing System) for financial reason. If a cheque bounces / dishonoured the customer will be charged for it. Similarly if a ECS is returned for financial reason the customer will be charged for it.

Banking experts believe that the ratio of CASA (Current Account Saving Account) deposits to overall deposits for IDBI Bank is very small compared to other banks like SBI, ICICI Bank and HDFC Bank. For a bank CASA Deposit come at a lower cost compared to time / term deposits. So in order to increase its share of CASA deposits IDBI Bank has done away with these service charges. IDBI Bank is the first bank to do away with most of the service charges.

“It’s free, it’s the first in the banking sector and it’s for everybody. This will apply to our savings and current account services, starting today (1st September 2010). No account holder will have to worry about keeping a minimum balance in his or her account,” said RM Malla, the current chairman and managing director of IDBI Bank while announcing the bank’s decision.

IDBI Bank: Currently the bank has a network of 720 branches and 1210 ATMs across the country. It is a public sector bank and the government holds 65% stake in the bank. The bank is planning to open 300 new branches in the Financial Year 2010-11. The bank currently has about 40 to 50 lakh retail customers. The bank aims to increase its retail customers accounts to 1 crore in the next 12 months.

Conclusion
IDBI Bank has taken the initiative. It remains to be seen how other public and private sector banks react to this move by IDBI Bank. If other banks also retaliate and waive off service charges for their existing and new CASA Customers, then in this fight for market share among the banks, the customer will be the ultimate winner. He will get to enjoy banking services free of cost for which he has been paying since so many years.

Please Note: All the information about the waiver of services has been sourced from IDBI bank website as on 5th September 2010. Please check with the bank about the waiver of service charges before deciding to open an account with the bank.

Please let us know your comments on the article by commenting in the section below or write to us at gopal_gidwani@yahoo.com

To learn how to retire as a crorepati with small monthly savings of as low as Rs 3000 – Rs 5000 read the article Kaun Banega Crorepati

Read about Tax Saving Infrastructure Bonds

{ 32 comments… read them below or add one }

Mohammed Naeem Qureishi September 6, 2010 at 5:05 am

Hi Gopal, Thanks for sharing this information. I was in the process of deciding which bank account should I opt for my wife. The Super Savings Account of IDBI is perhaps the right answer for me. This was really helpful.

Reply

Gopal Gidwani September 6, 2010 at 5:20 am

Hi Naeem,
Thanks for the kind words. It was really nice to know that the article was useful to you and helped you in deciding which bank to select for opening an account for your wife.

Reply

Satish September 6, 2010 at 6:34 am

It says here ‘super savings account’..I have an savings account with IDBI bank,but iam not sure whether it is Super savings account.. Are the above applicable for new account openers or for existing as well??

Reply

Gopal Gidwani September 6, 2010 at 6:48 am

Hello Satish,
As per the bank all the current accounts and savings accounts come under the waiver of service charges. Super Savings Account example that I have taken is just 1 type of savings account. So as along as you have a savings account with the bank; doesnt matter whether its a super savings account or any other savings account; your account still qualifies for waiver of service charges. The bank has no where indicated that the waiver of service charges is only for new account holders and not for the existing account holders. So I guess it is applicable for exisiting account holders also as it is not explicitly mentioned that existing account holders have been kept out of this. But I suggest that you call up the bank help line once and confirm it.
As per the bank website you can get in touch with them at
24 x 7 Toll-free No.:
1800-22-1070 (MTNL / BSNL)
1800-200-1947 (Mobile/Other)
Email: customercare@idbi.co.in
Hope that I have satisfactorily answered your query.

Reply

Chenthil R. Iyer September 6, 2010 at 8:21 am

Interesting info.. hope other banks follow suit..

Reply

Gopal Gidwani September 6, 2010 at 8:35 am

Hi Chenthil,
Thanks for the comment. I also hope other banks also follow suit specially ICICI Bank and HDFC Bank becuase I have my bank accounts with ICICI Bank and HDFC Bank ………… 🙂

Reply

Prashant Ingale September 7, 2010 at 10:49 am

Thanks Gopal for your valuable information.
Can you tell me is there any IDBI branch near Bhosari – Pune.

Keep on sharing such important information.

Prashant

Reply

Gopal Gidwani September 7, 2010 at 11:22 am

Hello Prashant,
On the IDBI Website I could not locate any branch in Bhosari. But I got the addresses of the below branches in the nearby area. Check if any of them is useful to you
Nigdi Branch Address Maratha: Chambers Plot No 3, Sector 25, Pradhikaran, Bhel Chowk, Nigdi, Pune – 411044, Maharashtra
Phone 020-27641584, 27653500, 27640359
Fax 020-56113500
Email nigdi@idbibank.com
Lockers Yes

Pimpri Chinchwad Address: Patil Plaza, Near Hans Medical, Near Jashree Talkies, Pune-Mumbai Road , Survey No. 4628, Pune – 411019, Maharashtra
Phone 020-27476978
Fax 020-27468964
Lockers Yes

Reply

OMkar September 7, 2010 at 12:21 pm

WOnderful !Thanks!

Reply

Gopal Gidwani September 7, 2010 at 12:31 pm

Hi Omkar,

Thanks a lot for the compliment

Reply

Nivedita Deshmukh October 11, 2010 at 6:44 am

Hi Gopal,
Thanks for information,i have IDBI saving account and happy to here that there is no charges for minimum balance in account, hope other banks follow this as i have HDFC bank account also.Thanks a lot….Bye

Reply

Gopal Gidwani October 12, 2010 at 3:38 pm

Hello Nivedita,
I too have an account with HDFC Bank and I also hope that they follow IDBI Bank and reduce a whole lot of charges just like what IDBI Bank has done ………. 🙂

Reply

aftab November 4, 2010 at 9:19 am

I just want to open my saving account in idbi bank. so what is the process should i have to do?

Reply

Gopal Gidwani November 5, 2010 at 7:58 pm

Hello Aftab,

To open an account with IDBI you will have to visit any of their branches. You will have to fill the Account Opening Form (AOF) and submit it to the officer there along with the Know Your Customer (KYC) documents. These include:
1) Passport size photograph
2) Photo ID Proof: Any document that has your photograph on it like Driving Licence, Passport, PAN Card etc
3) Address Proof: Any document that has your current address on it like Electricity Bill, Phone Bill, Passport, Ration Card, Driving Licence etc
4) Introduction: You will have to give reference of any person you know who already has any type of account with IDBI Bank.

For any further details you can get in touch with IDBI Customer Care.
As per the bank website you can get in touch with them at
24 x 7 Toll-free No.:
1800-22-1070 (MTNL / BSNL)
1800-200-1947 (Mobile/Other)
Email: customercare@idbi.co.in

Reply

Mohammed Israr November 19, 2010 at 3:28 am

Hi Munesh,

Even i want to open a account in IDBI its really helpful for all,
Thanks to IDBI.

Reply

Gopal Gidwani November 19, 2010 at 5:19 am

Hi Mohammad,
Thanks for the comment and its nice to know that article was useful to you.
But by the way who is Munesh?? and who was this comment addressed to??

Reply

DIPALI December 26, 2010 at 5:24 pm

I WANT TO OPEN AN ACCOUNT WITH ZERO BALANCE PLZ HELP ME

Reply

Gopal Gidwani December 28, 2010 at 3:13 pm

Hello Dipali,

To open an Zero Balance Account you will have to visit any branch of IDBI Bank. To open an account you will have to carry a photograph, one photo ID Proof and one address proof.

Reply

Amit February 11, 2011 at 5:49 pm

Hello Gopal,
The information was really helpful, but in your opinion will the bank change these policies after the CASA ratio increases? Are these policies only to lure the customers now and bang them at a later time? If the answer is no, I will catch up and open an account tomorrow itself 🙂

Reply

Gopal Gidwani February 13, 2011 at 12:05 pm

Hi Amit,
Banks dont often change their policies everyday or very regularly because it will affect the interests of large number of account holders. So I dont think these policies will change in the near term future. Even if they change you always have the option to withdraw your money and close your account. There are no charges to close your account ……… 🙂

Reply

Satish February 14, 2011 at 8:52 am

Point raised by Amit is very much valid,but as said by Gopal, one can close the account anytime if they reverse the Policies.
In my opinion though, service provided by IDBI Bank is excellent. Even if they change the policies,the charges levied are worth their service.

Reply

shanker March 27, 2011 at 1:08 pm

Hi, I just want to know that if IDBI is offering 0 balance account then why the hell they are asking us to deposit 5000 rs at the time of account opening? pls reply

Reply

Gopal Gidwani March 28, 2011 at 3:15 pm

Hi Shanker,
I dont know which type of account you are trying to open with IDBI for which they are asking you to deposit Rs. 5000. For a normal savings account IDBI is not charging any account opening amount.

Reply

Mohammed Naeem March 29, 2011 at 4:26 am

Dear Shankar, I have undergone the same situation. They (IDBI Bank) do ask for 5000 Rs. in order to open the SB A/c. however, you can withdraw the same on very first day once your account is active and keep it ‘0’ balance thereafter. Big deal, I don’t see harm in this. 🙂

P.S. they also credit interest on this amount till your account is activated. At least, I got the interest credited 2nd / 3rd day of account activation.

Reply

Gopal Gidwani March 29, 2011 at 11:18 am

Hi Naeem,
Thanks for the clarification. Your reply is very much appreciated!!!

Reply

Mohammed Naeem March 29, 2011 at 11:33 am

You are welcome, Gopal. 🙂

Reply

Sarika Mohite March 3, 2012 at 5:11 am

Can i open my account in IDBI bank with zero deposit amount.

Reply

sanjit May 21, 2012 at 7:23 am

hi gopal, i am intrested in your bank so , will you tell me how many days it takes for opening a savings bank account

Reply

Gopal Gidwani May 22, 2012 at 4:49 am

Hello Sanjit,
I am in no way associated with IDBI Bank. I am an independent blogger and write articles on financial planning and sometimes reviews of financial products.

In case you are interested in opening an account with IDBI Bank, I suggest you visit an IDBI Bank branch nearer to your place. Ideally opening an account should not take more than a week’s time from the time of you submitting the duly filled application form and the KYC Documents.

These days some banks even have insta-kit savings accounts, wherein the account opening kit (containing welcome letter, chequebook, debit card, debit card pin, internet banking pin) is handed over to the customer the moment he submits the form and KYC Documents. These accounts are not activated. The activation is done in 3-4 working days once the KYC documents are verified.

Reply

Suganthi September 8, 2012 at 7:00 am

hi.. I dunno any one who is having account in IDBI bank.. As mentioned by you “4) Introduction: You will have to give reference of any person you know who already has any type of account with IDBI Bank.””.. wats the solution for this???

Reply

rashmi October 29, 2012 at 3:14 pm

hi suganthi,
introduction is not mandatory, if u know any person you can surely give his reference. i m working with IDBI bank, its not a compulsion until and unless your dont have all the necessary kyc documents.

Reply

B.R.Choudhary March 25, 2014 at 2:00 pm

Plz tell me about ZERO balance account opening rules, term & Conditions.

Reply

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