We all know that we must maintain some specified minimum balance in our savings account. Otherwise, banks used to penalize us. But do you know after few months they must not levy any penalty!!!. Very few know these small banking rules.
It is clearly mentioned in RBI guidelines also that if savings account holder not maintain the minimum balance then there must be some penalty. Banks need to intimate customers about the rules and amount of penalty to be levied in a transparent manner. However, if the account holder continues the account with non- maintaining the minimum balance then RBI specified some rules, which are very much customer friendly and usually most banks not following. So let us see what those measures are.
1) Banks must inform you about the penalty levied on non-maintenance of minimum balance-
In case account holder fails to maintain the minimum balance then banks should inform the customers through SMS/Email/Letter. So even if you aware about penalty on non-maintaining of minimum balance, banks must inform you about the penalty levied to you.
2) Banks must limit the services available to such savings account-
In case customer not maintained the minimum balance, then banks must not continue to charge. Instead, they must reduce the services available to that of Basic Savings Bank Deposit Accounts. Once the balance restored, then they convert the account to its original account. However, how many banks follow these rules?
For your information, Basic Savings Bank Deposit Accounts are those savings accounts, which meant for basic banking transactions and you no need to maintain minimum balance. Along with that, usually there will be some restriction on services.
3) The penalty must be in proportion to the shortfall-
Usually banks penalize you to the full amount of penalty for not maintaining the minimum balance. However, let us say you have Rs.4, 000 in your account and banks specified limit of maintaining minimum balance is Rs.10, 000. In addition, bank rule claims that not maintaining a minimum balance will cost you Rs.1, 000. In that case, banks cannot levy you full amount. Instead, it should be proportionate. To say in simple words, it must be equal proportional of actual shortfall. In the above example, it is Rs.600 but not Rs.1, 000 as you have balance of Rs.4, 000 in your savings account.
Whether all banks follow this rule? Check out yourself 🙂
4) Account balance must not turn into negative-
If you continuously not maintained the minimum balance required by banks then they must not charge continuously so that your balance turns into negative. Instead, they must take the above two steps to bring it to always in positive balance.
5) Banks have to wait for a month before levying penalty-
If an account holder fails to maintain the minimum balance even after repeated intimation to him/her, then banks must levy charge only after a month of waiting period. So they cannot charge you if your balance falls short of minimum balance for a single day.
Hope above information will be helpful in your banking.
Image courtesy of [Stuart Miles] at FreeDigitalPhotos.net
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Sir last 6 month or last 2 year batakar amt deduct hua humene kya karna
Dear Akash,
Approach the bank.
Recently i opened sbi Account which cost minimum of 3000 at any time but recently they cut 118 rupees from my bank what is this for?what should i do now please help
Dear Abhay,
Please approach the bank in this regard.
sir what is closure, can you please gave information in breifly ??
Dear Shahan,
Close the account by visiting the branch.
Sir,
Axis Bank employee cheated me in the name of insurance. He forged the proposer sign and initiated an insurance of max life wealth assured plan. I complained as soon as bond paper arrived. The bank didn't take my complain seriously and manipulated the solution information.
1. What to do?
2. Am I get compensation for bank fraud?
Dear Avinash,
You can complain at a higher level of the bank and also with the insurance company immediately.
Yesterday SBI bank deducted 5000 rupees from my account when someone send me 20000 rupees. When I checked in mini statement there is no details why or what for the bank deducted the money. What should I do pls healp me.
Dear Amit,
Contact the bank.
Hi, I have two questions.
1.If a person holds two savings account in the same bank and the minimum balance is not maintained in one of them , will the bank deduct charges from the other account ?
2.What would happen to the charges if the account goes dormant ?
Dear Sajal,
1) No, they can't.
2) It is still considered as due.
Hi sir,
my salary account was kotak bank one year back but company not given salary in kotak bank they given my personal account. kotak bank account not used much just used simple transactions. so after one year now called to kotak bank customer they told me your non-maitanance charges are 5100/-rs , i was shocked . they are not inform their charges via sms/call. i called to customer care they told me yesterday. i need to close my account with penalty payment , i'm unable to pay non-maintanance charger, if forget that penaly , any problems in future , please suugest me what can i do it now ?? thanks...!!
Dear Vinod,
If the account is not useful for you, then let it be.
Axis Bank didn't intimate me abt my negative balance. By mistake I had a credit of 25k and they deducted that amt stating as my prior negative bal.i told them that i was not informed abt the negative balance. They said u didn't do any transaction and since 8 months ur account is zero so it's ur responsibility to check with the bank n maintain the aqb.any idea what can be done
Dear Komal,
Whether they deducted Rs.25,000? Now coming back the charges, whether they have intimated the charges at the time of account opening or during the period of account when they either started to charge or revised their charges?
Hi sir,
i have opened student account 2009 . that time there no rules of minimum balance. my account was not active till 2018 now i have checked my account they have charged minimum balance charge without any notification. what i can do can you please suggest me please.
Dear Keerthan,
If you need the account, then pay dues and activate it. Else better to close the same.
Sir,
I have a student account in Karnataka Bank. It's almost 3 years since i left my education and am unaware of minimum balance and even i didn't check the balance. Now it's showing negative balance of 2000Rs/. I visited my nearest branch and asked them to close my account but they refuse by saying account is changed from student to general automatically and asked me to pay the balance first then they will close.. What should I do?? Plzz help.
Misba-Either pay the dues and activate else just forget it.