Banks asked to inform customers in advance about fall in minimum balance
Moneylife Digital Team 21 November 2014
RBI also asked banks to ensure that the balance in savings account does not turn into negative balance mainly due to levy of charges for non-maintenance of minimum balance
The Reserve Bank of India (RBI) on Thursday asked banks to inform their customers about fall in minimum balance at least a month in advance. The central bank said penal charges should be levied from customers only to the extent of shortfall in such balances.
“In the event of a default in maintenance of minimum balance/average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS/ email/ letter that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable,” the RBI said.
The RBI directed banks to ensure that penalty should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account.
The RBI asked banks to ensure that the balance in the savings account does not turn into negative balance solely because of levy of charges for non-maintenance of minimum balance.
Comments
m.gurdasani
2 years ago
BANKS ARE NOT INFORMING AND PENALTIES ARE VAGUE , DIFFERENT AND VERY BIG AMOUNT PER MONTH. REDRESSAL PLEASE.
Sreekanth Yelicherla
8 years ago
No mention about when it is going to be effective! It is effective from April 2015.
Rakesh Goyal
8 years ago
This will minimise one of the loot avenues, perpetrated by the banks on the customers. Bank do not compete but they act as monopoly under IBA. A good step by RBI, after a long time.
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