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No penalty on non-maintenance of minimum balance in dormant a/cs: RBI

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

May 07, 2014 11:05 IST | India Infoline News Service
The Reserve Bank of India has 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 banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account, RBI said in a notification on Tuesday.
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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