Banking News – In a move drawing criticism from customers and observers alike, Prabhu Bank has increased its mobile banking renewal fee by 33% without prior notice, placing an additional financial burden on the general public.

Despite multiple instances in the past where the bank has been accused of flouting legal provisions and disregarding Nepal Rastra Bank (NRB) regulations, it has once again come under fire—this time for unilaterally raising mobile banking service fees. Customers were reportedly not informed in advance of the significant fee hike.

While the bank claims to have posted a notice on its website, it has not issued any direct communication to account holders. The annual mobile banking renewal fee has been raised from NPR 300 to NPR 399—an exact 33% increase compared to the previous year.

According to NRB guidelines, licensed financial institutions are required to inform customers in advance of any changes to service charges, interest rates, or other contractual terms. These provisions are aimed at protecting consumers and ensuring transparency in the banking sector.

“Licensed institutions must provide prior notice to customers when making any changes to the fees, interest rates, or terms mentioned in the service agreement,” states the central bank’s directive on financial services and charges.

However, customers have reported that Prabhu Bank deducted the increased fee from their accounts without consent or prior notification. “The bank deducted NPR 399 without informing me. They didn’t even inquire beforehand,” said customer Vikas Rauniyar, who also alleged that the bank’s website continued to display outdated fee information.

Another customer, Bal Kiran Yadav, shared a similar experience. “Last year, they charged NPR 300 annually. This year, without any notification, they deducted NPR 399,” he told Banking News. Yadav mentioned that he plans to file a formal complaint with Nepal Rastra Bank.

The sudden fee increase, implemented without customer approval, has raised concerns about transparency and consumer rights. Critics argue that the move reflects a profit-driven motive rather than a customer-centric approach. By raising fees by 33% in one go, Prabhu Bank has effectively shifted its revenue goals onto its customers.