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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65145
Volume:
10 |
6 |
Jun 2026
Pages:
1-5
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Commerce (Accounting & Finance)
PSG College of Arts & Science
Department of Commerce (Information Technology) and (Banking & Insurance)
Hindusthan college of Arts and Science
Digital banking has transformed financial transactions in India, offering speed and convenience. However, hidden charges such as minimum balance penalties, ATM fees, SMS alerts, and transaction costs often surprise customers due to poor disclosure. This study examines the challenges faced by digital banking users with special reference to hidden charges, and analyses consumer awareness levels. A sample of 128 respondents from Coimbatore city was surveyed using a structured questionnaire. Tools such as percentage analysis, correlation, chi square test, and weighted mean were applied. Findings reveal that 52 percent of users sometimes experience extra charges, 42 percent are not notified beforehand, and 61 percent are only partially aware of applicable fees. Minimum balance penalty (43 percent) is the most noticed hidden charge. Chi square analysis shows a significant association between awareness level and user response (χ² = 17.30, p < 0.05). Weighted mean scores indicate that hidden charges discourage frequent usage (mean = 3.5) and that greater transparency would improve trust (mean = 4.04). The study suggests banks should simplify fee disclosures, send pre deduction alerts, and conduct customer awareness programmes.
KEYWORDS
Digital banking has become an essential part of everyday financial activities in India, but hidden charges remain a significant concern. This study of 128 respondents in Coimbatore reveals that while most users are young and frequent digital banking adopters, awareness of service charges is only partial. Hidden charges such as minimum balance penalties, ATM fees, and SMS alerts are commonly experienced, often without prior notification. The lack of transparency and complex fee structures lead to confusion, dissatisfaction, and reduced trust. However, the findings also show that customers strongly believe greater transparency would improve trust and usage. Banks must therefore simplify disclosures, proactively educate customers, and ensure fair practices. Ultimately, addressing hidden charges is essential for building a reliable and customer friendly digital banking ecosystem.
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Publication Date
6/17/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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