No fine for non-maintenance of minimum balances in inoperative accounts: RBI
Updated: May 07, 2014 11:23:50am
Mumbai, May 7 (KNN) The Reserve Bank of India (RBI) has said that customers will not be fined for not maintaining a minimum balance in their bank accounts in any inoperative account, a measure towards consumer protection.
“It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account,” RBI said in a notification on Tuesday.
In its first bi-monthly monetary policy review on April-1, the RBI had said that instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts, and restore the services when the balances improve to the minimum required level.
Banks were advised in November 2005 to make available a basic banking 'no-frills' account either with 'nil' or very low minimum balance as well as charges that would make such accounts accessible to vast sections of population.
“… on Financial Inclusion, banks are advised to offer a ‘Basic Savings Bank Deposit Account’ which will offer following minimum common facilities to all their customers- The ‘Basic Savings Bank Deposit Account’ should be considered a normal banking service available to all; this account shall not have the requirement of any minimum balance,” the November 2005 RBI circular said. (KNN/SD)
“It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account,” RBI said in a notification on Tuesday.
In its first bi-monthly monetary policy review on April-1, the RBI had said that instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts, and restore the services when the balances improve to the minimum required level.
Banks were advised in November 2005 to make available a basic banking 'no-frills' account either with 'nil' or very low minimum balance as well as charges that would make such accounts accessible to vast sections of population.
“… on Financial Inclusion, banks are advised to offer a ‘Basic Savings Bank Deposit Account’ which will offer following minimum common facilities to all their customers- The ‘Basic Savings Bank Deposit Account’ should be considered a normal banking service available to all; this account shall not have the requirement of any minimum balance,” the November 2005 RBI circular said. (KNN/SD)
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