Savings Account Rules: When can savings account balance become negative? Know the rules of RBI regarding minimum balance

The Kalamkar News, New Delhi: Everyone should know that banks impose some penalty if the account balance is less than a minimum limit. 

Minister of State for Finance Dr. Bhagwat Karad had said in a written reply in the Lok Sabha that in the last 5 years, public sector banks and 5 main private sector banks have earned about Rs 21 thousand crore by imposing penalty for not maintaining minimum balance. 

This charge varies between Rs 400-500 for different banks. But have you ever thought that if all the money is withdrawn from such accounts and the bank imposes penalty, then your balance will become negative . So can someone's account balance go negative? Let us know about it.

What instructions has the Reserve Bank given?

According to the instructions of the Reserve Bank of India, it is necessary for all the banks to ensure that the balance in any account does not become negative due to penalty for not maintaining the minimum balance. 

However, this does not at all mean that the customer will not have to pay the penalty for not maintaining minimum balance. Now again the same question arises that if penalty is imposed then the minimum balance will become negative.

Customers have the right to information

RBI  had issued a circular regarding this on 20 November 2014. According to this, many banks cannot charge the customer due to his difficulty and lack of attention. 

Banks will have to inform customers immediately as soon as the account goes below the minimum balance. 

It is also important for banks to inform their customers about the charges that will be levied in such a situation, so that they can take necessary steps in time. 

Convert account to basic account 

Let us tell you that according to the circular of the Reserve Bank, instead of imposing penalty on such accounts, banks should limit the facilities provided on such accounts. 

Also, banks should convert such accounts into basic accounts. When the balance in the customer's account again exceeds the minimum balance, it should be restored to the regular account.

How are penalties charged by the bank?

Let us tell you that if there is less than the minimum balance in an account, the account becomes negative. Whereas when the customer deposits money in it, the penalty amount is deducted first. 

Suppose a penalty of Rs 1000 has been imposed for not maintaining minimum balance in an account, then as soon as a customer deposits Rs 5,000 in that account, first Rs 1,000 will be deducted from it and the customer will withdraw only Rs 4,000. Will get.