Inform customers about fall in minimum balance in Savings Account : RBI to banks
In a big relief to the savings bank account holders, Reserve Bank of India has directed all banks not to penalize customers who failed to meet the minimum balance criteria without informing them.
As per the guidelines, Banks should intimate the customer about shortfall in minimum balance and notify him that penal charges will be levied if minimum balance is not met within a month from the date of notice. The intimate shall be sent via SMS/Email/Letter etc.
However, the penalty should be directly proportionate to the extent of shortfall in such balance and should not exceed the average cost of providing the services.
In simple words, the penalty should be a fixed percentage calculated on the amount of difference between the actual balance of account and the minimum balance. For this a slab structure will be finalized soon.
Further, the penal charges should not be so much that the balance of savings account turns into negative balance.
RBI also suggested banks that instead of levying penal charges for non-maintenance of minimum balance, banks should restrict services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances reaches to the minimum required level.
The New Guidelines of levying penal charges for non-maintenance of minimum balance will come into effect from 1st April, 2015.
Full Notification has been reproduced as below: