State-owned lender, Bank of Baroda, on Tuesday reversed course and said it would not charge for basic banking services following a public outcry.
The announcement came just a day after the bank said it would begin charging customers for basic transactions, including deposits and withdrawals, above certain limits.
“In view of the current prevailing COVID-19 pandemic and its impact on the economy, it has been decided to withdraw the above circular with immediate effect,” the lender said in a statement.
Opposition political parties had also protested against the move.
Two sources said it was likely that the charges were rolled-back after government intervention.
The Finance Ministry and Bank of Baroda did not immediately reply to an email seeking comment.
“Other (public sector banks) have also intimated that they do not propose to raise bank charges in the near future in view the COVID pandemic,” the finance ministry said in a tweet earlier today.
Bank of Baroda reported a net profit of Rs 1,679 crore for the quarter ended September, a jump of 128 per cent from the same period a year ago.