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Basic savings bank deposit accounts are those that have to be mandatory offered by banks without any minimum balance requirement. However,
they can be used only for deposit and withdrawal of cash or receipt of money. There are no other services such as cheque books.
Banks however say that new norms will hit customers as the sum of all charges for individual services for they avail will be higher than the penalty.
"The consumer will end up paying more. On the minimum balance of Rs 10,000 we earn only Rs 400 against which we provide ATM transactions,
statement and cheque book. The break-even for providing these services is minimum balance of Rs 30,000. The alternative is that we have to
charge for these services as against the Rs 400 we earn on minimum balance and the customer may end up paying more than the penalty if he
regularly uses cheques and other services," said Aditya Puri, MD, HDFC Bank. He added that this was not yet a directive and IBA has to get back to
RBI with the viewpoint of banks that the customer may actually suffer," said Puri.
"The direction is very clear. You create a set of accounts where you do not charge for not maintaining minimum balance but you will be entitled to
only limited services. If you want more you will probably have to pay for it," said KR Kamath, chairman, Punjab National Bank and also head of the
Indian Banks Association. RBI also said that in the interest of their consumers, banks should consider allowing their borrowers the possibility of
prepaying floating rate term loans without any penalty. It has also asked banks to limit the liability of customers in electronic banking transactions
in cases where banks are not able to prove customer negligence.
2014
2014
First impressions: Nokia Lumia 730, the selfie phone 06 Sep 2014
9/6/2014 10:30 PM
No penalty for bank balance below minimum limit: RBI to banks - The ...
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Copyright 2012 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
9/6/2014 10:30 PM