RBI, as part of a consumer protection initiative, has asked banks not to levy penalties on customers who don't maintain a minimum balance in any inoperative account
The Reserve Bank of India (RBI) on Wednesday directed all banks not to levy penal charges for non-maintenance of minimum balances in any inoperative account.
Earlier, in its first bi-monthly monetary policy, the central bank has proposed certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in any inoperative accounts.
Several banks, including the State Bank of India (SBI), do not levy any charge if the minimum balance is not maintained in an inoperative savings account.
In the first bi-monthly monetary policy statement for 2014-15, the RBI had asked banks not to levy penal charges on customers who do not maintain minimum balance in basic savings bank accounts. RBI governor Dr Raghuram Rajan, however, had said that banks, 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.
For operative accounts, customers of ICICI Bank and HDFC Bank are charged Rs750 per quarter if they don't maintain a minimum average quarterly balance of Rs10,000 in urban centres and Rs5,000 in semi-urban areas.
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