Problems With Maintaining Minimum Balance in Bank Account |Things Need to Know
- by Satakshi-Gauri
- Jul 09, 2020 13:08
There are many people who are complaining about social media about banks charging non-maintenance of the minimum balance penalty. Reena Dhiman, 32, who needed money, thought of redeeming some of her old debt mutual fund investments. But she got a rude shock when her bank deducted the entire amount for non-maintenance of minimum balance charges. In fact, her account was showing a negative balance. Reena had done lump sum mutual fund investments through her old salary account with HDFC Bank, which she didn’t operate after that. Reena is not alone.
There are many people who are complaining about social media about banks charging non-maintenance of minimum balance penalty in the current situation where many people are facing a cash crunch due to the COVID-19 crisis. Banks are allowed to charge non-maintenance of minimum balance penalty to the customers but there is no cap on the charges. The penal charges have to be approved by the bank’s board. Banks charge different charges based on the location of the account. The non-maintenance charges vary for urban, semi-urban, and rural branch customers as well as there are various slabs of charges depending on the average monthly balance requirement and the shortfalls.
“RBI has directed banks to charge proportionally as per the difference between the actual balance and minimum account balance requirement," said Raj Khosla, CEO, MyMoneyMntra.com, a financial services provider. For example, HDFC Bank has an average monthly balance (AMB) requirement of ₹10,000 for urban branch accounts while for semi-urban branch accounts the requirement is ₹5,000. So, if the AMB is below ₹2,500 in an urban branch account, the charges are ₹600 per month while if the AMB is less than ₹10,000 but above ₹7,500, the charge is ₹150. The charges are divided into four slabs, including these two.
Read More Latest Bollywood Movie Reviews & News
Read More Sports News, Cricket News
Read More Latest Mobile, Laptop News & Review