Balance deficient in Bank Account warrants no fine
Mumbai: Balance deficient in Bank Account warrants no fine.Customers have their escape from penalties for not maintaining minimum balances in savings accounts , Reserve Bank of India ordered banks to cut down services on low-balance accounts and do away with fines. Banks however say the new regime will lead to higher charges on services of customers.
In its first bi-monthly policy on Tuesday, RBI said that it proposes to frame comprehensive consumer protection regulations based on domestic experience and global best practices. “Banks should not take undue advantage of customer difficulty or inattention. Instead of levying penal charges for non-maintenance of minimum balance inn ordinary savings bank accouter, 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,” RBI said.
Many account holders who maintained dormant accounts, which were short of the Rs. 10,000 insisted on by most private banks, found that their balances had vanished as the bank had deducted a penalty every quarter for not maintaining adequate balance. Basic savings bank deposit accounts are those that have to be mandatorily offered by banks without any minimum balance requirement. However, they can be used only for deposit and withdrawal of cash or receipt of money. There are no other services such as cheque books.