LOK SABHA ANNEXURED UNSTARRED QUESTION 918 DATED 27.02.2015
Levy of charges for non-maintenance of minimum balance in savings bank account shall be subject to the following additional guidelines:
I. In the event of a default in maintenance of minimum balance / average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS / email /letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice , penal charges will be applicable.
II. In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder.
III. The policy on penal charges to be so levied may be decided with the approval of Board of the Bank.
IV. The penal charges should be directly proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. A suitable slab structure for recovery of charges may be finalized.
V. It should be ensured that such charges are reasonable and not out of line with the average cost of providing the services.
VI. It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
The above annexure was attached with undermentioned Lok Sabha Q&A:-
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
UNSTARRED QUESTION NO 918
ANSWERED ON 27.02.2015
MINIMUM BALANCE IN BANK ACCOUNTS
918 . Karunakaran Shri P.
Will the Minister of FINANCE be pleased to state:-
(a) whether the Reserve Bank of India (RBI) has issued guidelines to Bank to inform their customers about fall in minimum balance in their accounts in advance;
(b) if so, the details thereof; and
(c) the status of implementation of said guidelines by banks?
The Minister of State in the Ministry of Finance (SHRI JAYANT SINHA)
(a) to (c) Reserve Bank of India (RBI) has issued guidelines dated 20.11.2014 specifying that while levying charges for non-maintenance of minimum balance in their savings bank accounts, banks shall adhere to the additional guidelines given in the Annexure. The guidelines come into effect from April 1, 2015.
All banks have been advised to take immediate steps to update customer information so as to facilitate sending alerts through electronic modes (SMSs / e.mails etc.) for effective implementation of the guidelines.
Annexure Source: http://126.96.36.199/Annexture_New/lsq16/4/au918.htm
No bank is intimating the minimum balance to be maintained by a customer from time to time. The State Bank of India has not stipulated any minimum balance in savings account. Even if the balance is zero, no penal charges are levied.