RBI : The campaign could impact banks’ earnings from debit card fees, late loan repayment fines, and charges for not maintaining minimum balance.

People with knowledge of the situation say that the RBI (Reserve Bank of India) is pressuring banks to reduce fees on certain consumer goods, such as debit cards, which might put the crores of rupees that lenders receive from these levies at risk.

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According to persons who asked not to be named in order to reveal private conversations, RBI officials have communicated to banks in recent weeks that they want to lower service fees, including those for late payments and minimum balance violations.

Requests for response from the financial regulator were not answered.

following many Indian banks were burned during a cycle of deteriorating corporate loans, the move comes following a fresh push into retail lending in recent years. Growth in sectors including personal loans, auto financing, and small company financing has made the retail market profitable for banks, but it has also drawn the attention of a watchdog worried about the rate of growth.

According to the people, the central bank is especially aware of costs that disproportionately affect low-income clients in the most populated nation in the world. They claimed that banks are free to choose their own fees and that the RBI has not set a set range for them.