India’s central bank is pushing lenders to lower fees for some consumer products, according to a Bloomeberg report — a drive that may jeopardise the crores banks in the country get from fees.

Reserve Bank of India officials have conveyed to banks in recent weeks that it wants a reduction in service charges — including those for debit cards, minimum balance violations and late payments.

The move follows a renewed drive among India’s banks into retail lending.

Growth in areas such as personal loans, financing for cars and smaller businesses has made the retail market lucrative for banks, while at the same time it had caught the eye of a watchdog concerned about the pace of expansion.

The RBI is particularly mindful of fees that disproportionately impact low-income customers. There are no mandated thresholds on bank surcharges. Processing fees for retail and small business loans range from 0.5-2.5 per cent, according to BankBazaar.