In response to a Which? study that concluded it is "virtually impossible" for people to calculate and compare current account costs, the Government said it is "clear" that customers must have easy access to clear information on overdraft charges.
It confirmed that a "more robust regulatory system" will be in place soon.
Through the midata initiative the Government is encouraging banks to give consumers information about their spending patterns so they are able to find the best deal for them.
They already have access to free text alerts when a balance falls below a certain level, a free seven day current account switching service, while a more robust regulatory system that will help deliver for consumers will be in place soon.
Current account providers are using vague language and baffling charges structures making it very difficult to calculate the cost of slipping into an unauthorised overdraft, research from consumer watchdog Which? has found.
The consumer group used 18 volunteers, including a principal inspector of taxes and a retired headteacher, to work out what the cost of an impromptu overdraft would be using a mock statement and charging structures on the bank's website.
The volunteers got just 10 out of 72 calculations correct between them, with the tax inspector getting just one of his four calculations right and the former headteacher getting them all wrong.
Richard Lloyd, executive director of consumer rights organisation Which?, said the reforms were a step in the right direction but did not go far enough:
This is why the Government should intervene with more radical measures including simpler pricing, greater transparency and scrutiny of the cost of energy policies, and the separation of domestic supply from generation businesses.
More must be done to keep prices in check and give consumers confidence that the price they pay for their energy is fair.
Consumer watchdog Which? has called on leading financial providers to follow the example of a minority of firms that have dropped costly call numbers.
Barclays and Barclaycard said they will now offer a freephone or basic rate number for all customer help lines.
We applaud Barclays and Barclaycard for breaking from the pack on high rate numbers and want to see other financial firms follow their lead.
It's great news that NatWest and RBS are doing the right thing for their customers by dropping costly calls. The new leaders at RBS have promised to renew the banks' efforts to improve customer service and this is a very welcome start.
With two of the biggest banking groups now leading the way by offering freephone or geographic numbers, we hope this is a tipping point for the banking sector - there's really no excuse for other providers not to follow suit.
Consumer watchdog Which? found 95% of credit card providers studied and 89% of current account providers use expensive 084 or 087 numbers for complaints or customer service help lines.
Existing customers are also being charged more than new ones, with free 0800 numbers used for 52% of sales or new customer lines compared with just 26% for existing customers and 21% for complaints.
The survey of 2,070 found 39% prefer to call financial firms with an inquiry and 31% would rather complain by phone.
A British Bankers' Association spokesman said:
All banks are actively looking at how they can reduce costs for customers. We expect to see many banks changing to use local numbers for complaints in the near future and it is good to see that some banks have already committed to doing so.
Financial firms have been urged to lower the cost of their high-rate customer and complaint lines after a study found 73% are high-rate numbers.
Consumer watchdog Which? found that 177 out of 242 lines for services such as current accounts, loans and credit cards were pricey 084 or 087 numbers.
The companies included leading high street banks and building societies such as HSBC, Lloyds Bank, Nationwide and TSB Bank, credit card providers American Express, Capital One and Tesco Bank and insurers Aviva, Churchill and Direct Line.
Which? executive director Richard Lloyd said: "Millions of us prefer to deal with our bank on the phone, yet we are expected to cough up for a costly call when we do."
:: Populus surveyed 2,070 adults online between August 30 and September 1.
Richard Lloyd, the executive director of Which?, has told BBC Radio 5 Live Wonga has been in a "complete shambles, a mess of a credit sector" and "needs sorting out".
He will be among those giving evidence at today's select committee.
We need to see a much more urgent approach to getting the cost - in particular fees and charges that payday lenders hit people with - under control, capped, much tougher rules, much sooner about the way they advertise and the way they deal with people who are applying for their loans.
...They're advertising payday loans as a lifestyle choice.... a lot of costs of a payday loan are hidden away in the terms and conditions ... the way they get people into trouble is hitting people with fees and charges that aren't necessarily there in the advertising.
Consumer group Which? has urged Chancellor George Osborne to take action to curb energy costs in his upcoming autumn statement, warning that three in 10 people do not know how they will afford to heat their homes this winter.
"People need your help - and they need it now," Which? said in a letter to Mr Osborne.
It calls for a number of measures to be introduced to save consumers up to £1.8 billion per year, including:
Separating energy generation from supply to make the wholesale market more competitive
Scrapping the carbon floor price
Freezing the smart meter roll out for two years
Removing the Warm Home Discount from consumers' bills
Reforming the Energy Companies Obligation, which helps people insulate their homes