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No Penal Charges for Inactive Accounts

Banks are no longer permitted to levy penal charges for non-maintenance of minimum balances in inoperative accounts. The Reserve Bank of India issued new guidance stating that as of May 6, 2014, banks cannot charge fees if customers do not maintain minimum balances in accounts that are inactive. This guidance updates previous policies from 2002 and 2012 regarding requirements to inform customers about minimum balance policies and fees as well as exempting basic savings accounts from inactivity fees.

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231 views1 page

No Penal Charges for Inactive Accounts

Banks are no longer permitted to levy penal charges for non-maintenance of minimum balances in inoperative accounts. The Reserve Bank of India issued new guidance stating that as of May 6, 2014, banks cannot charge fees if customers do not maintain minimum balances in accounts that are inactive. This guidance updates previous policies from 2002 and 2012 regarding requirements to inform customers about minimum balance policies and fees as well as exempting basic savings accounts from inactivity fees.

Uploaded by

Vinod Yb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Date: May 06, 2014


Levy of penal charges on non-maintenance of minimum balances in inoperative Accounts
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

http://www.rbi.org.in/scripts/PrintView.html

10-09-2014

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