SBI warns closure of savings/current accounts with balance below Rs 500
Updated: Jan 13, 2014 12:51:51pm
New Delhi, Jan 13 (KNN) The State Bank of India (SBI) has warned that Savings Bank Accounts as well as Current Accounts with balances of Rs 500 and below and with no operations for the last two years can be closed without further notice.
The Savings/Current Accounts which have not complied with the Know Your Customer (KYC) norms are also liable to be closed.
“Savings Bank/ Current Accounts with balance of Rs 500 and below and with no operations for the last 24 months and found wanting in KYC compliance are liable to be closed without further notice,” SBI said in a notification.
According to the notification, RBI guidelines on KYC norms stipulates all accounts in the bank to be KYC compliant irrespective of the duration a customer has already been banking with the bank.
The customers will also have to submit their documentary proof of identity, proof of address and recent photographs by February 28, 2014.
The notification further said, “After 28th February 2014, KYC non-compliant accounts will attract a nominal charge of Rs 112 besides restrictions being placed in acceptance of future credits into such accounts.”
According to the KYC norm, for deposit products like Savings Bank Account and Current Deposit Account, the Bank will normally stipulate certain minimum balances to be maintained as part of the terms and conditions governing operation of such accounts.
Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank from time to time. For Savings Bank Account, the Bank may also place restrictions on number of transactions, cash withdrawals, etc, for a given period.
Similarly, the Bank may specify charges for issue of cheque books, additional statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for operation of the accounts and schedule of charges for various services provided will be communicated to the prospective depositor while opening the account.
Further, making the banking more expensive for the customers, SBI has backed the idea of charging customers for transactions, stating that its ATM operations are making losses.
According to a media report, SBI Chairperson Arundhati Bhattacharya has said that a commercially-viable model is needed for ATM network expansion.
The RBI too is in favour of charging customers to cut down on cash transactions in the economy in a bid to minimise the risk of money laundering in the system.
“We will examine that (IBA recommendation of cutting down number of free ATM transaction to 5 per month). Many other proposals have come. The whole idea is that people are using too much of cash and adding to the costs. We’ll examine the issue,” a media report said, quoting RBI deputy governor H R Khan.
Right now, people having savings accounts enjoy five free transactions per month at the ATMs of banks other than their own, while there is no such limit for use of ATM owned by their own bank. (KNN Bureau/SD)
The Savings/Current Accounts which have not complied with the Know Your Customer (KYC) norms are also liable to be closed.
“Savings Bank/ Current Accounts with balance of Rs 500 and below and with no operations for the last 24 months and found wanting in KYC compliance are liable to be closed without further notice,” SBI said in a notification.
According to the notification, RBI guidelines on KYC norms stipulates all accounts in the bank to be KYC compliant irrespective of the duration a customer has already been banking with the bank.
The customers will also have to submit their documentary proof of identity, proof of address and recent photographs by February 28, 2014.
The notification further said, “After 28th February 2014, KYC non-compliant accounts will attract a nominal charge of Rs 112 besides restrictions being placed in acceptance of future credits into such accounts.”
According to the KYC norm, for deposit products like Savings Bank Account and Current Deposit Account, the Bank will normally stipulate certain minimum balances to be maintained as part of the terms and conditions governing operation of such accounts.
Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank from time to time. For Savings Bank Account, the Bank may also place restrictions on number of transactions, cash withdrawals, etc, for a given period.
Similarly, the Bank may specify charges for issue of cheque books, additional statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for operation of the accounts and schedule of charges for various services provided will be communicated to the prospective depositor while opening the account.
Further, making the banking more expensive for the customers, SBI has backed the idea of charging customers for transactions, stating that its ATM operations are making losses.
According to a media report, SBI Chairperson Arundhati Bhattacharya has said that a commercially-viable model is needed for ATM network expansion.
The RBI too is in favour of charging customers to cut down on cash transactions in the economy in a bid to minimise the risk of money laundering in the system.
“We will examine that (IBA recommendation of cutting down number of free ATM transaction to 5 per month). Many other proposals have come. The whole idea is that people are using too much of cash and adding to the costs. We’ll examine the issue,” a media report said, quoting RBI deputy governor H R Khan.
Right now, people having savings accounts enjoy five free transactions per month at the ATMs of banks other than their own, while there is no such limit for use of ATM owned by their own bank. (KNN Bureau/SD)
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