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

More Under Fema / RBI

Posted Under

Category : Fema / RBI (3527)
Type : Notifications (15996) Notifications/Circulars (32366)
Tags : RBI Notifications (1996)

0 responses to “Banks not permitted to levy charges for non-maintenance of minimum balances in inoperative Basic Savings Bank Deposit Accounts account”

  1. Ravindra says:

    The ruling emphasises “in operative accounts”. But what is the position wrt operative accounts. Do they still need minimum balance and are banks allowed to levy penal charge for them?

  2. bharat bhushan says:

    GOOD DECISION OF RBI FOR NOT CHARGING PENALITIES FOR MINIMUM AVERAGE BALANCE IN SAVING ACCOUNTS DUE TO HIGH INFLATION

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts