RBI directs banks to not charge customers for non-maintenance of minimum balance amount

Business

oi-Roshni

By Roshni Agarwal

Updated: Tuesday, April 1, 2014, 14:35 [IST]

RBI citing the concerns of the bank account holder has directed banks to do away with the practice of charging a fee for non-maintenance of a minimum balance amount in the savings account. Further, to be more customer friendly and in the interest of customers, banks have been directed to reduce their liability in case of online banking transactions, wherein banks fail to prove negligence on the part of customer.

Further, instead of charging a fee for the non-maintenance of minimum balance amount, banks have been guided to reduce the scope of banking services to such customers. And in a case when the minimum balance requirement of the bank is complied by the customers, banks can once again provide all the usual banking services.

Also, the banks have been asked to allow term loan borrowers who borrowed at floating rate of interest to prepay with no prepayment penalty or foreclosure charges. However, EMI on bank financing shall remain the same as RBI kept the key policy rates that though determine the direction of interest rates in the economy unchanged. Know about the outcome of RBIs monetary policy meet and five quick takeaways herein.

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