Finance Minister Nirmala Sitaraman has also directed banks not to impose non-maintenance like penalty till June 30 at such a time. Although the deadline has expired, there have been many cases even after that in the month of June itself, banks have charged non-maintenance charges from customers.
As per a notification issued by the Reserve Bank of India in November 2014, the balance of the account can never go into negative numbers due to non maintenance charges imposed for not keeping minimum balance in the bank account. The notification states that it should be ensured that the balance in the savings account is completely converted to negative balance due to non-levy of fees for maintenance of minimum balance.
Non-Maintenance Charge on Minimum Balance: While
answering a question in the Lok Sabha in July 2019, the Finance Minister said that 18 public sector banks and four private sector banks have close to non-maintenance charge on minimum balance in the last three years. 10,000 crores is recovered. Banks may charge penalty for non-maintenance like non-maintenance of minimum balance from the customer but there is no limit.
A limit should be set by the bank board. Banks charge differently because of different locations of the account. RBI has instructed banks to levy fees according to the actual balance and minimum balance requirements.
Close your idle account
Banks use SMS, mail or other means to communicate to the customer, to inform the customer that there is no minimum balance in the account and the bank may impose a fee. Therefore, close your ineffective account in time so that such charges can be avoided.
The bank cannot recover money from the customer if there is no transaction for two years or the account becomes inactive. Before closing the account, remove all your investments, SIP and EMI which is linked to the account, de-link.