Dear friends,
Good evening.
No levy on SB accounts as per yesterday's RBI directive.
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Don't levy penalty on savings account: RBI to banks
NDTV | Updated On: April 01, 2014 14:07 (IST)
The Reserve Bank of India has asked banks not to levy penalty on non-maintenance of minimum balance in ordinary savings bank accounts and instead limit the services.
"Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to Basic Savings Bank Deposit Accounts and restore the services when the balances improve to the minimum required level," the RBI said in its first bi-monthly monetary policy statement.
Aditya Puri, MD & CEO of HDFC Bank, said Indian Banks' Association will share its feedback on RBI's suggestions on savings account. "If the penalty is removed, the customers would bear a higher cost as banks could be forced to charge services like ATM transactions, cheque books etc." Banks bear a cost for maintaining a savings account, he added.
The RBI also directed banks not to levy penal charges for non-maintenance of minimum balances in any inoperative account.
To safeguard customer interest in electronic banking transaction, banks were also asked by the RBI to "limit the liability of customers in electronic banking transactions in cases where banks are not able to prove customer negligence."
The Reserve Bank of India (RBI) today held interest rate steady at 8 per cent, in line with expectations. Since taking office in September, Governor Raghuram Rajan has raised the repo rate three times by a total of 75 basis points or 0.75 per cent.
"Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to Basic Savings Bank Deposit Accounts and restore the services when the balances improve to the minimum required level," the RBI said in its first bi-monthly monetary policy statement.
Aditya Puri, MD & CEO of HDFC Bank, said Indian Banks' Association will share its feedback on RBI's suggestions on savings account. "If the penalty is removed, the customers would bear a higher cost as banks could be forced to charge services like ATM transactions, cheque books etc." Banks bear a cost for maintaining a savings account, he added.
The RBI also directed banks not to levy penal charges for non-maintenance of minimum balances in any inoperative account.
To safeguard customer interest in electronic banking transaction, banks were also asked by the RBI to "limit the liability of customers in electronic banking transactions in cases where banks are not able to prove customer negligence."
The Reserve Bank of India (RBI) today held interest rate steady at 8 per cent, in line with expectations. Since taking office in September, Governor Raghuram Rajan has raised the repo rate three times by a total of 75 basis points or 0.75 per cent.
The pause in interest rate hikes comes at a time when retail inflation has eased to a 25-month low, while wholesale inflation has eased to a nine-month low.--
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With regards,
Dr. K. Sampath Kumar, B.A. (Economics), BGL, M.Com., M.Phil., Cert. A.I.I.B.,
MBA (Finance), MBA (HR & Marketing), ACS, FCMA, Ph. D.,
Professor, SSN School of Management
C/o. SSN College of Engineering
Rajiv Gandhi Salai (OMR)
KALAVAKKAM - 603110
Kancheepuram District, Tamil Nadu, India
Landline : 044-24860668
044-24860668
Mobile : 90944057339094405733
Success consists of getting up
just one more time than you fall
-- Oliver Goldsmith
MBA (Finance), MBA (HR & Marketing), ACS, FCMA, Ph. D.,
Professor, SSN School of Management
C/o. SSN College of Engineering
Rajiv Gandhi Salai (OMR)
KALAVAKKAM - 603110
Kancheepuram District, Tamil Nadu, India
Landline : 044-24860668
044-24860668Mobile : 9094405733
9094405733Success consists of getting up
just one more time than you fall
-- Oliver Goldsmith
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