ABC's local branch sticks to charging annual fees
7/4/2004 16:53
While other domestic banks are waffling, the Shanghai branch of the
Agricultural Bank of China (ABC) is sticking to its plan to charge annual fees
to its debit card holders, the Laodong Daily reported today.
As of February
this year, ABC became the first domestic lender to charge 10 yuan (US$1.2)
annually to debit card holders in order to increase profits for the intermediary
banking services. However, the move has aroused strong public criticism.
As a
concession to the criticism, ABC's Beijing branch will not collect fees to
established debit-card holders during the first year of the policy. Collection
will begin in the second year.
Moreover, holders of debit cards used
specifically for paying vehicle taxes, receiving salaries and for university
students will not be charged the fees.
However, as of July 1, new debit-card
holders must pay the fees, according to ABC's Beijing branch.
The Shanghai
branch of the ABC is remaining firm. "We will stick to charging annual fees to
debit-card holders until our headquarter bank asks us not to do so," said a
spokesman with the local branch of ABC.
Wendy Zhang/ Shanghai Daily news
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