Canara Bank to charge annual fee on its debit cards

State-owned Canara Bank will levy about Rs 112 annual fee on its ATM debit cards from July 1.

The bank, which currently issues the cards free of cost, said in a circular that a need has been felt to offer the services at competitive rates in tune with "market trends".
"It has been decided to charge a nominal fee of Rs 100 per card plus applicable service tax on completion of one year from the date of issue/renewal of the card and thereafter to be charged yearly," it said.

The current rate of service tax is 12 per cent.The annual fee will be levied from July 1, it added. Several other banks, including SBI, also charge an annual fee in the same range.

Canara Bank further said the annual fee will not apply to debit cards issued to customers with Canara Small Savings Account, Basic Savings Bank Account and Financial Savings Bank Account.

It said that for debit cards issue or renewed up to June 30, 2012, the annual fee would charged on July 1. For cards issued after July 1, 2012, the fee will be recovered after 12 months.

The annual charges will be debited from primary account of the card holder by the system on due date.

In case of insufficient balance, a "hold" will be created and same will be released as and when the balance is available, the bank said.