The Finance Minister was answering a supplementary question during Question Hour in Rajya Sabha on the issue of public sector banks collecting a penalty of about Rs 8,500 crore from customers for not maintaining the minimum balance in their accounts in five years.

There is no need to maintain minimum balance in savings account

Sitharaman said that the provision of keeping a minimum balance in a bank account does not apply to Pradhan Mantri Jan Dhan accounts and basic accounts of poor people. It is only for those who are expected to have a minimum balance at a certain level. In a written reply to a question in the Lok Sabha, it came to light that public sector banks recovered about Rs 8,500 crore in this item in five years from FY 2019-20.

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Minister of State for Finance Pankaj Choudhary also told the Lok Sabha last month that public sector banks had collected Rs 2,331 crore from depositors as penalty for not maintaining average monthly minimum balance in their accounts in the financial year 2023-24.

The post No need to maintain minimum balance in these accounts – Everything You Need To Know first appeared on Rightsofemployees.com.

Then the customer is left with no option but to close the account. But even when you go for account closing, the bank officials do not close your account and say that after clearing the minus amount, your account may be closed. If you are also facing the same problem, then let us tell you what the RBI rule says about this.

Maintain minimum balance

Nowadays everyone gives preference to savings bank account. Banks keep a condition while opening a savings account from the customers that after opening the bank account, they have to maintain a minimum balance in the account. This minimum balance limit is also decided by the banks themselves. If the minimum balance is not maintained in the customer’s account, then penalty will be deducted from his account. But, let us tell you, doing so is subject to RBI rules.

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What does the RBI rule say

Under the rules of RBI, the bank cannot deduct money from the customer’s account even if there is no minimum balance. At the same time, by deducting in the name of penalty, the bank cannot make the customer’s account in minus. Still, if a bank does this, the customer can go to the RBI and complain about the bank.

where to complain

If the bank makes your account negative by deducting the money, then you can complain about it by visiting the RBI website. Based on your complaint, RBI will take action against the bank.

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The most important thing is to maintain minimum balance. Every bank has different minimum balance limit, which customers have to maintain. If the minimum balance is not maintained according to the variant of a customer’s account, then the bank charges a penalty from him.

State Bank of India (SBI Minimum Balance Rules) has fixed the rule of minimum balance in its accounts according to the region. For rural areas, this limit is Rs 1,000. Semi-urban area customers will have to keep Rs 2,000 in their account. Whereas, in Metro City this limit is 3 thousand rupees.

Minimum balance rules for HDFC Bank account holders

The average minimum balance limit in HDFC Bank also depends on the residency. This limit is Rs 10,000 in cities, Rs 5,000 in semi-urban areas and Rs 2,500 in rural areas.

Minimum balance rules for ICICI Bank account holders
ICICI Bank has fixed the rule of minimum balance in its accounts according to the region. There is a limit of Rs 10,000 for urban areas, Rs 5,000 for semi-urban areas and Rs 2,500 for rural areas.

Boards of banks can remove fine from those who do not keep minimum balance.

At present, you have to pay fine for not keeping minimum balance in the bank account. But if everything goes well in the coming time, there will be no need to maintain minimum balance in the bank account. In fact, Minister of State for Finance Bhagwat Kishanrao Karad had recently said that the Board of Directors of banks can decide to abolish the penalty on accounts that do not maintain minimum balance. In response to a question, Karad had said in Srinagar, “Banks are independent bodies. Their board of directors can decide to waive the fine.

The post SBI Minimum Balance Rules: SBI, HDFC and ICICI Bank customers Alert! Here are the rules related to minimum balance first appeared on Rightsofemployees.com.

Minimum Balance in Bank Account: Have you ever had to pay penalty for not maintaining minimum balance in bank account? You probably have the answer yes. If this is the case, then there will be no need to maintain minimum balance in the account if everything goes well in the future.

The limit for maintaining minimum balance in savings and current accounts of different banks varies. In the last days, during the campaign to open Jan-Dhan accounts towards the Centre, efforts were made that every citizen of the country should have a bank account. There is no compulsion to maintain minimum balance in Jan Dhan account.

Minister of State for Finance Bhagwant Kishanrao Karad has given an important statement regarding the maintenance of minimum balance in an independent account for the Board of Directors to decide to waive the penalty. He said that the board of directors of banks can take a decision to waive penalty on accounts that do not maintain minimum balance. Karad said in response to a question – Banks are independent bodies. Their board of directors can take a decision to waive the fine.

Let us tell you the question asked to Minister of State Karad, the media had asked Minister of State Karad about maintaining minimum balance. He was asked whether the Center is considering giving instructions to banks that no penalty should be imposed on accounts in which deposits fall below the minimum prescribed level.

Karad on a two-day visit to Jammu and Kashmir In fact, the Minister of State for Finance is on a two-day visit to the Union Territory to review the implementation of various financial schemes in Jammu and Kashmir. He said that the banks in Jammu and Kashmir have done a good job in the last few years. Also directed that they improve their performance on those standards.

The post Big news for SBI-HDFC-ICICI bankers, the hassle of maintaining minimum balance is over! first appeared on Rightsofemployees.com.