The latest guideline by RBI – In today’s modern techno-savvy world, everyone has to bank for millions. Even economically, it is impossible to lead a life without a bank account. But, there are many rules laid down by RBI for the banking sphere, which most people do not know about. One of the important ones is the minimum balance rule. This rule helps to keep a certain amount in the account for customers availing financial services
The Reserve Bank of India oversees the regulations of Indian banking. An establishment of the government that conducts guidelines from time to time to issues rules for the banks, RBI stands for Reserve Bank of India. India let’s customers who are denied their rights by banks seek the help of RBI. For instance, as per the rules concerning minimum balance in the account, RBI tells (rbi guidelines) that banks can charge balance only up to a certain amount. If an account shows zero balance, it clarifies what the bank has to do with zero balance in accordance with the RBI guidelines.
Under the Guidelines of RBI
Almost everything in every bank is mobile nowadays. One can make transactions very quickly using digital channels like UPI. There are, however, quite a few other tasks that can only be completed at the bank; although, the rule of minimum balance is applied to banks, which comes under the guidelines of RBI. This rule states that all consumers must maintain a minimum amount in their bank account. This rule is for the well-being of both customers in terms of financial stability and safety within banks. (RBI New Guidelines)
The minimum balance, therefore, differs from bank to bank. The minimum balance limit also varies from city to city and place to place. There are many times when we are at least sure in our minds that if the bank finds this minimum balance, it will charge a penalty, but it is not so: Let us know everything about minimum balance (Minimum balance update).
Rs 8500 crore from clients recovered
And many of the people open several accounts but then fail to maintain that minimum balance and are charged a penalty by the banks. Many times people have to withdraw money from their accounts, but all rules apply to them too, so they be charged a penalty. All banks have collected several crores of rupees as a penalty for not maintaining a minimum balance by consumers. In last five years, public sector banks have collected Rs 8500 crore from their customers by levying a minimum balance requirement. In many cases, the banks take the balance to be negative, and when people want to close the account, they ask for money from them. But RBI has very strict rules regarding this.
RBI rules about minimum balance-
The bank shall give a person a period of 30 days to make up that minimum balance. Again, According to the instruction of RBI, then the message or email sent to the customer if the account balance goes down. If this is also not done, then the penalty is deducted by the bank.
Deduction of money on what basis-
The rule is of minimum balance in banks according to different banks. Furthermore, only location matters. This amount will be lesser in the village bank and bigger in the city bank, but in metro cities it is really huge.
As per the RBI rules, banks cannot charge any fee fine according to their own wish. It runs as per the slabs. The amount can only be deducted by the bank according to the ratio of that less amount. Now, this raises the question about how it will work about the zero balance.
Etc Complaints to be forwarded to RBI:
Let it be told that RBI has even said about the zero balance with banks. All of them have wrongly transferred your account to minus. But RBI is discipline, its honoring is instruction, that accounts cannot be sent to minus (RBI Rules on minimum balance). If you have an account on zero balance then you can close your account, the bank cannot ask you to pay the minus amount. If it says so then you can give your complaint to RBI.
Bank’s will not work –
No panic should be in a situation if your bank balance is zero and the bank puts your account in minus (Minus balance RBI). Your account cannot go to freedom minus. In case of any kind of this happening by the bank, you can visit and file your complaint on the official site www.rbi.gov.in. To add to this, you can also email RBI. Thus, RBI will seriously consider your complaint and might take action against the bank solving your problem.
Accounts that do not need a minimum balance in banks:
There are various accounts that have been excluded by the RBI from the minimum balance rule (Minimum balance RBI rule). You can have your account converted into a salary account for your job, where no balance requirement is applicable. You receive your salary directly from a salary account. Thus, minimum balance is also not needed to be kept in Jan Dhan accounts. These are great options for people who do not want to manage funds on a regular basis but still wish to avail the benefits of banking without putting any financial pressure on themselves.