Bank customers seem to be determined to fight against the rising fees on banking services, hidden charges, higher interest rates, and mis-selling of other banking products. Nearly one lakh people have signed an online petition sent to the Reserve Bank of India (RBI) in this regard.

In what seems to be a fight between customers and banks, news publication Moneylife Foundation headed by journalist and author Sucheta Dalal, has initiated an online petition with Change.org to oppose the justification on bank charges.

"We, a group of bank consumers and non-governmental organisations (NGOs) are disturbed at the unfair treatment that bank customers suffer in the form of frequent, arbitrary and one-sided increase in banking charges, or the refusal of banks to automatically pass on contractual benefits such as lower interest to those with floating rate home loans, or the rampant mis-sellling of third-party products such as insurance," the petition reads.

It has attached a memorandum with a consensus view of a group of knowledgeable consumer activists, policy watchers, bankers, and trade unions requesting "urgent policy changes to ensure that banks treat bank customers fairly."

The issue especially came to the forefront after HDFC Bank raised its charges on cash transactions and government-owned State Bank of India started charging customers for non-maintenance of minimum balance in savings accounts from April 1.

Even as banks are suffering a hit on profitability due to bad loans, there is pressure from the government and RBI to cut costs where possible and build a healthy balance sheet. To counter slow loan growth and justify the high costs involved, banks have started charging customers for some banking transactions to push digital banking and earn additional fee income.

So far, the banking regulator RBI, maintains it has left it upon banks to decide on the charges and prefers to stay away from micromanaging them.

Signed by 99,664 people so far, the petition suggests that RBI give more teeth to charter of consumer rights to ensure best global practices are followed in the increasing digital push, allow portability of bank accounts, facilitate easier shift of bank loans, protect against the one-sided unfair terms and conditions of loan agreements, frequent hike in charges, faulty emails and mis-selling of third party insurance products and others

"It is the duty of the government and regulators to ensure that the lenders do not appropriate this taxpayers’ money by overcharging the borrowers and create barriers when the borrower wants to shift this loan," it said.

Supported by many trade unions and financial experts, the petition highlights that over the years, the RBI has remained silent on several anti-depositor actions of banks.

"The Banking Ombudsman's rulings also tend to side with banks, making no attempt to observe the pattern of complaints which would amply bring out rampant mis-selling of insurance and wealth management products. We have identified some specific areas and request RBI’s intervention to take corrective steps after engaging with customers," it added.