Mishra Nitish Rakesh reports ₹1,416 unfair deductions by Axis Bank, including 18% GST on penalties. Read full details, consumer impact, and how Choice4Voice.com helps amplify such complaints.
Complaint Summary
| Detail | Information |
|---|---|
| Complainant Name | Mishra Nitish Rakesh |
| Company Involved | Axis Bank |
| Nature of Complaint | Unjust deduction of banking charges and 18% GST on penalties |
| Amount Deducted | ₹1,416 in a single day |
| Complaint Source | LinkedIn post by Mishra Nitish Rakesh |
| Issue Date | 16 August 2025 |
| Location | India |
Full Complaint Write-Up
Banking is meant to support customers, not burden them with unfair practices. However, Mishra Nitish Rakesh, an IT professional, recently highlighted how Axis Bank’s penalty system and taxation policies are creating financial stress for account holders.
On 16th August 2025, Axis Bank deducted a total of ₹1,416 from Nitish’s corporate account without any transaction. The deductions included:
- ₹1,100 – Monthly Average Balance (MAB) Charges
- ₹198 – GST at 18% on MAB charges
- ₹100 – Monthly Service Charges
- ₹18 – GST at 18% on service charges
Key Issues Raised:
- Is it justified to levy GST on a penalty?
- Why should middle-class and small business owners bear repeated deductions when banks already earn substantial interest from deposits?
- Why are such penalties imposed without a grace period or warning?
Nitish pointed out that this isn’t an isolated issue – thousands of bank customers across India face similar deductions every month. Most remain silent, but these charges add up to significant amounts.
He appealed to the Reserve Bank of India (RBI) to:
- Cap penalty charges to a reasonable level.
- Stop GST from being applied to penalties, as it increases the burden on customers.
- Ensure banks provide grace periods or warnings before debiting charges.
Nitish summarized his concern in one line:
“Banking is supposed to support people, not exploit them.”
Author Section
About the Complainant:
This complaint was shared by Mishra Nitish Rakesh, an IT professional specializing in automation technologies such as Selenium, Java, TestNG, Cucumber, Appium, Maven, Jenkins, Postman, Rest Assured, and MySQL. He publicly raised this issue on LinkedIn to highlight the unfair banking practices impacting thousands of individuals and businesses.
Brand Involved
Axis Bank A major private sector bank in India, accused here of deducting unfair penalties and applying GST on such charges. This case raises concerns about transparency, consumer protection, and regulatory oversight in India’s banking industry.
Choice4Voice.com Section
At Choice4Voice.com, we work as a consumer advocacy platform that ensures customer complaints do not go unheard. Many people post their grievances on social media, but companies often ignore them unless they gain public traction. That is where we step in.
Here’s how we help:
- We publish genuine consumer complaints on our platform for better visibility.
- By amplifying complaints on our website and LinkedIn, we create pressure on companies to respond.
- Our goal is not profit but to stand as the helping hand for consumers who are neglected by brands.
If you are facing similar issues with banks, e-commerce platforms, telecom companies, insurance providers, or any other service, you can:
👉 Directly submit your complaint here: Submit Your Complaint
👉 Tag us on LinkedIn when you share your concern for faster visibility.
The more people raise their voice, the stronger the pressure on companies to act responsibly.
At Choice4Voice.com, we strongly believe:
“Your complaint is not just your voice – it represents thousands who face the same problem.”
Important Note
This complaint is based on a LinkedIn post by Mishra Nitish Rakesh. If Axis Bank resolves this issue, they may contact us, and we will mark the complaint as Resolved on our platform.
Frequently Asked Questions (Q&A)
1. Why did Axis Bank deduct ₹1,416 from the account?
Axis Bank deducted ₹1,416 as penalties for not maintaining the Average Monthly Balance (MAB) and added 18% GST on these penalties.
2. What is the Average Monthly Balance (MAB)?
MAB is the minimum average balance a customer must maintain in their account. If not maintained, banks charge penalties.
3. Is GST applicable on bank penalty charges?
This is the core concern – banks are currently applying 18% GST even on penalty charges, which many consumers argue is unfair.
4. Can banks charge GST on penalties legally?
Banks argue it is part of service charges, but consumers believe penalties should not attract GST, as they are punitive, not service-based.
5. How much was deducted from Nitish’s account?
A total of ₹1,416 was deducted on 16 August 2025, without any transaction.
6. What action is the complainant demanding?
Nitish is urging the RBI to cap penalties, stop GST on such charges, and enforce consumer-friendly practices.
7. Are other customers facing similar deductions?
Yes, thousands of Axis Bank and other bank customers face similar issues every month, but many do not raise their voices.
8. How do such charges impact small businesses?
For small businesses, unplanned deductions can affect cash flow, increase financial stress, and harm trust in banking institutions.
9. Does RBI regulate penalty charges?
RBI allows banks to set charges but expects them to be reasonable and transparent. Consumers are calling for stricter RBI intervention.
10. What is the complainant’s professional background?
Nitish is an automation testing professional, skilled in multiple technologies, who used LinkedIn to bring attention to this issue.
11. Which bank is involved in this complaint?
The complaint is against Axis Bank, one of India’s largest private banks.
12. Can consumers appeal against unfair deductions?
Yes, consumers can:
- File a complaint with the bank’s grievance redressal system.
- Approach the Banking Ombudsman if unresolved.
13. How common are MAB penalties in India?
They are very common. Almost all banks in India charge penalties for not maintaining minimum balance.
14. What alternatives do customers have to avoid penalties?
Customers can:
- Opt for zero-balance accounts.
- Switch to digital banks or basic accounts without MAB requirements.
15. How can Choice4Voice.com help in such cases?
Choice4Voice.com publishes consumer complaints online and shares them widely to ensure companies cannot ignore customer issues.
16. Can RBI stop banks from charging GST on penalties?
Yes, if enough consumer complaints are raised, RBI and government authorities can revise the guidelines.
17. What should a customer do if charges are deducted unfairly?
- Raise a complaint with the bank immediately.
- Escalate to RBI’s Ombudsman if not resolved.
- Submit complaint on Choice4Voice.com for wider visibility.
18. Is Axis Bank the only bank charging GST on penalties?
No, almost all major banks in India levy GST on penalties. The issue is systemic.
19. Why is this case important?
Because it shows how silent deductions affect thousands of customers, but few raise their voice, making it easier for banks to continue.
20. How can consumers unite against unfair banking practices?
By raising complaints publicly, tagging banks on LinkedIn, and submitting cases to platforms like Choice4Voice.com.
21. What is the complainant’s key message?
Nitish emphasizes: “Banking should support people, not exploit them.”
