Friends,
Reserve Bank of India (RBI), India's Central Bank has issued a notification that no minimum balance charges will be charged by the Banks on Inoperative Bank Accounts. RBI in his First Bi-monthly Monetary Policy Statement, 2014-15 report mention that Consumer protection is an integral aspect of financial inclusion. The Reserve Bank proposes to frame comprehensive consumer protection regulations based on domestic experience and global best practices. Banks should also not take undue advantage of customer difficulty or inattention. 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 should not levy penal charges for non-maintenance of minimum balances in any inoperative account.
Now RBI has released a notification dated 06.05.2014 and directed all banks not to levy penal charges on non maintenance of minimum balance in inoperative accounts .Though this rule is applicable on all type of saving bank account holders including person having single saving bank account however this a major relief to all account holders ,who generally have multiple accounts and not able to operate /maintain minimum balance in each account.
The complete notification is given as under.
RBI/2013-14/580
DBOD. Dir.BC.No. 109 /13.03.00/2013-14
May 6, 2014
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir/Madam
Levy of penal charges on non-maintenance of minimum balances in inoperative Accounts
Please refer to Part B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014, proposing certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in any inoperative accounts.
2. In this connection, a reference is invited to our Circular DBOD. Dir. BC. 53/ 13.10.00/ 2002-03 dated December 26, 2002 on ‘Minimum Balance in Savings Bank Accounts’ advising banks to inform customers regarding the requirement of minimum balance in savings bank account and levy of penal charges for non-maintenance of the same at the time of opening the account in a transparent manner.
3. Further, in terms of para 3 of our Circular DBOD. No. Leg. BC.35/09.07.005/2012-13 dated August 10, 2012 on ‘Financial Inclusion- Access to Banking Services - Basic Savings Bank Deposit Accounts’ it was advised to banks that no charge should be levied for non-operation/activation of Basic Savings Bank Deposit Accounts (BSBDAs).
4. It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account.
Yours faithfully,
(Prakash Chandra Sahoo)
Chief General Manager
