The RBI had said that 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. Photo: Pradeep Gaur/Mint
The RBI had said that 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. Photo: Pradeep Gaur/Mint

RBI asks banks not to fine customers for not maintaining minimum balance

RBI says banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account

Mumbai: The Reserve Bank of India (RBI) on Tuesday said banks cannot fine customers for not maintaining a minimum balance in their bank accounts, in a move that will benefit many customers who have inoperative accounts.

“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 on Tuesday.

In its first bi-monthly monetary policy review on 1 April, the RBI had said that 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.

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