No penalty if minimum balance not kept in dormant bank account: RBI

RBI directed banks in 2012 not to charge customers for non-operation or activation of savings bank deposit accounts.

By: Press Trust of India | Mumbai | Published:May 6, 2014 10:17 pm

The Reserve Bank today asked banks not to levy penalties on customers who don’t maintain a minimum balance in any inoperative account as part of a consumer protection initiative.

“It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account,” RBI said in a notification.

Several banks, including the State Bank of India, do not levy any charge if the minimum balance is not maintained in an inoperative savings account.

The RBI directed banks in 2012 not to charge customers for non-operation or activation of basic savings bank deposit accounts.

For operative accounts, customers of ICICI Bank and HDFC Bank are charged Rs 750 per quarter if they don’t maintain a minimum average quarterly balance of Rs 10,000 in urban centres and Rs 5,000 in semi-urban areas.

In the first bi-monthly monetary policy statement for 2014-15 released last month, the RBI had said 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,” it said.

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  1. M
    Manoj
    Jan 16, 2017 at 9:52 am
    My running bank account in Axis bank , but my child was hospitalized not maintain the balance in saving account bank was charges and discuss with bank account not closed , Bank say please pay charges after the close bank account please help.
    Reply
    1. V
      Vikram
      Jan 18, 2016 at 6:04 pm
      I also had ry account in which i was being charged as penalty for not maintaining since it was converted to saving account. However i talked to BM n explained him all and mentioned about RBI guidline too and after few objections he asked his executive to close closed . He asked me if i want to keep same account so i said i would love to but i cant afford then he said you would have bank account so i said yes ..i have but that too is on zero balance ..so he agreed .
      Reply
      1. V
        vinayak
        Sep 27, 2016 at 7:51 am
        i had icici bank account,it has dormant by bank but i want make it operate,so i get any charged by bank.
        Reply
        1. P
          Priya Mehta
          Dec 9, 2015 at 6:51 pm
          I Would say serco is disgusting company to join as they are more concerned about HDFC bank which they operate with, rather than the employees. Serco must be flexible enough to offer a choice of banks to employees rather than being pro HDFC.
          Reply
          1. S
            Sreejith CR
            Dec 20, 2015 at 7:08 am
            HDFC charged 399/- monthly, what to do
            Reply
            1. V
              Vid
              Sep 8, 2015 at 4:15 pm
              What to do , if the bank still insist cust to hav a minimum bal -10,000 and charging 399 /- Rs monthly for not maintaining the same?
              Reply
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