BEIJING: China's price watchdog has fined Industrial Bank, CITIC Bank and the Postal Saving Bank of China for charging clients excessive fees, the National Development and Reform Commission (NDRC) said on Thursday.

The top economic agency said the three banks were charging clients for services including the resetting of account passwords. The practices continued until July 13, even though they were told to stop on July 1.

As a result, Industrial Bank and CITIC Bank have been fined 2 million yuan ($313,000), and the Postal Saving Bank was fined 1.8 million yuan.

"All financial institutions must learn a lesson and keep in mind the rules of charging fees and to safeguard the interests of clients," the agency said.

To cut their reliance on traditional lending and broaden their revenue sources, China's banks are trying to sell more financial services to customers. But the additional charges that banks impose on clients are often met with public resentment.

The price watchdog, alongside China's central bank and the bank regulator, earlier this year told banks to stop charging for 34 services, including the opening of savings accounts and when fielding client queries about account information.

According to China's banking association, Chinese banks offer 1,076 services in 2010, of which 226 items are provided for free while the rest incurred fees.

Source:economictimes