New RBI notification for RRB regarding charges on Minimum Balance in Savings Accounts

The Reserve Bank of India vide its Notification No RBI/2014-15/363 DBR.RRB.BC.No.55/03.05.33/2014-15 dtd Dec 22 , 2014 has notified additional guidelines to RRBs with regard to levy of penal charges on non-maintenance of minimum balances in savings bank accounts. According to this notification, the RRBs shall adhere to the following guideline for levy of penal charges for non-maintenance of minimum balance in Savings Accounts :-

1) The non maintenance shall be notified to the customer by way of sms/email/letter and one month time for correcting the balance shall be given to the customer.

2) Even after intimation, the minimum balance is not maintained within stipulated time, the penal charges shall be recovered under intimation to the account holder

3) The policy on penal charges shall be decided with the approval of the Board of the bank

4) The penal charges shall be proportionate to the shortfall observed.

5) The penal charges shall be reasonable

6) It shall be ensured that because of the levy of penal charges , the account should not turn into negative balance.

The relevant notification is reproduced below :-

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