Soon there will be no penalty in banks saving account for low balance

Are you one who is frustrated with unexpected amount deduction from your bank balance if you forgot to maintain minimum balance in your bank account .. if yes then this may be a good news for you as on Tuesday, RBI said that it proposes to frame comprehensive consumer protection regulations based on domestic experience and global best practices. "Banks should not take undue advantage of customer difficulty or inattention. 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,"


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.

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This is a good news to hear that their is no penalty against zero balance,as this irritate so much when their is a amount seen in the bank but can't get it when required.Also a best part is that usage will also be increased in the bank which will be good for banks.