RBI Minimum Balance Rules: Bank account minimum balances are important in an important way in the avoidance of penalties or punishment and in keeping your account active. From this month, the Reserve Bank of India (RBI) has new rules concerning minimum balance maintenance, which protect a customer from unnecessary charges and make banking simpler.
If you do not have that minimum balance in your account, your bank is free to impose a penalty on you. However, these are some concessions that have been provided by RBI in its latest directives for customers, particularly with regard to inactive accounts and some exemptions. So, let’s break it down into the essentials for you and how they will affect you.
Generally New Rules of RBI Minimum Balance
1. Inactive Accounts With No Minimum Balance Will Not Attract a Penalty
The minimum balance limit varies from bank to bank within India, depending on whether it is a rural or an urban branch. New rules by RBI state that an account cannot be charged by a bank for a penalty if it has been dormant for a duration of time of not less than two years and has no minimum balance.
An account has been classified as inactive if there are no transactions for a full continuous period of 24 months. Earlier even dormant accounts were fined; however, now no unnecessary charges will be placed upon dormant accounts.
2. Exception for the Time Being for Scholarship and Benefit Transfer Accounts
The RBI explained that scholarship distribution or Direct Benefit Transfer (DBT) accounts are free from minimum balance maintenance. That is, whether the account was active or not, banks cannot charge penalties even for low balances in this case.
This ensures that students and beneficiaries of government schemes will not be unduly burdened by the monetary penalties for having little money in their accounts.
3. Interest Continues Even for Inactive Savings Accounts
Even if a savings account is made inactive, the banks cannot stop giving interest on the amount that is deposited in it. Furthermore, accounts specific to government schemes (like PMJDY or any other scheme linked to welfare) that have a zero balance would not be marked inactive, and there would be no penalty on such accounts.
4. Where to Complain If Banks Charge Unfair Penalties?
So, in case a bank charged you with unreasonable imposition of minimum balance concerning inactive or exempted accounts-you can follow the steps given below:
- Contact your bank to seek an explanation.
- In case it is not resolved, proceed to file a complaint in the grievance redressal cell of that particular bank.
- In case it is still unresolved, file a complaint about this on the official Banking Ombudsman portal of the RBI.
RBI is a solid institution that looks after the customer protection policies under which banks are compelled to follow fair practices. You also have the right to argue against the unjust charges.