Minimum Balance: Reserve Bank of India (RBI) has given big relief to bank customers. According to RBI, now charges will not be deducted even if there is no minimum balance in inactive and inoperative accounts.
The Reserve Bank has told the banks that the rule of minimum balance cannot be applied on those bank accounts in which no transaction has taken place for two years. Also, accounts opened for scholarship and direct benefit transfer (DBT) will also not be deactivated. Even if there has been no transaction in them for two years. These new rules will be implemented from April 1.
RBI issued a circular
According to the report of Times of India, RBI has issued a circular in this regard. Under the new rules of RBI, banks will have to inform customers about account deactivation. RBI is making every effort to reduce the money lying idle in the banks. This circular is also a part of this effort.
Information will have to be given through SMS, letter or email.
Under the new rules, banks will have to inform customers about deactivation of their accounts through SMS, letter or email. Banks have also been told that if there is no response from the owner of an inactive account, then the guarantor will have to be contacted. A guarantor is required while opening a new account.
No fee will be charged for activating the account
As per rules, banks are not allowed to levy penal charges for non-maintenance of minimum balance in any account designated as inoperative account. No charges will be levied for activating inactive accounts. According to RBI, unclaimed deposits increased by 28 percent to Rs 42,272 crore by the end of March 2023, which was Rs 32,934 crore a year ago.
RBI will get money from accounts closed for 10 years
Any balance in deposit accounts which has not been operated for 10 years or more. Banks are required to transfer money to the Depositors and Education Awareness Fund created by RBI.
