Bank deducted money for Minimum Balance? Check what RBI Says
In some banks like HDFC, Axis etc., there is a rule that savings accounts should have a minimum of Rs 10,000. Some banks also have a minimum balance of 1,000. Some banks allow SB accounts with zero balance facility.
All banks impose penalty for accounts without minimum balance. However, the amount of penalty depends on the decision of the respective banks. Sometimes there may be different policies in this regard in different branches of the same bank.
There are many accounts with zero balance. If they are fined it will be a negative balance. Is that allowed? What does the Reserve Bank of India say about this? Here are the details of Reserve Bank Of India (RBI) regulations and options available to banks.
There is a rule that there should be a minimum balance in the savings accounts of most banks. If this Minimum Account Balance is not met, a penalty will be imposed. However, there are many accounts with zero balance. If they are fined it will be a negative balance.
Is that allowed? What does the Reserve Bank of India say about this? Here are the details of RBI regulations and options available to banks. All banks impose penalty for accounts without minimum balance. However, the amount of penalty depends on the decision of the respective banks.
Sometimes there may be different policies in this regard in different branches of the same bank. Rural banks do not pay much attention to minimum balance. Penalties tend to be higher in city banks.
Details of minimum balance calculated:
In some banks like HDFC, Axis etc., there is a rule that savings accounts should have a minimum of Rs 10,000. Some banks also have a minimum balance of 1,000. Some banks allow SB accounts with zero balance facility.
There is a procedure to calculate the minimum balance of an SB account in a month. At the end of each day, the amount of money in the account is calculated. That way all days are counted. Add it up, divide it by 30 or 31 days of a month and get the average amount. The same will be the minimum balance.
Also Read: Husband And Wife Will Get Rs 10,000 Monthly In This Central Government Scheme
What Reserve Bank of India Rule:
Banks cannot suddenly impose penalty when the money in the SB account falls below the minimum balance level. In such cases, notice should be given to those customers by communicating through SMS, email or letters. Customers should be given at least one month to fill the minimum balance. The RBI has made it clear in the rules formulated in 2014 that only after that penalty can be imposed.
Not only that, the penalty cannot be imposed equally in all cases, or the penalty cannot be too large. The RBI rule says that the amount less than the minimum amount, the penalty should be levied accordingly. Also, the rule also says that facilities should be provided in a convenient manner for the customer to pay the penalty.
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