Big news for the bank customers. Under a new rule which will come into effect on 20 September, the account holders shall be penalized in an amount of 6% if the balance stays less than ₹10,000 in the bank account. It encourages customers to keep the minimum balance in their savings account.
New Rule Minimum Balance
The announcement advises bank customers that they must now keep at least ₹10,000 balance in their account. If the balance slips down from this limit, the bank shall charge a penalty of the 6% of the amount shortfall. This will adversely impact those who frequently withdraw all their balance without considering the minimum amount to maintain.
Why this Rule was Introduced?
The Reserve Bank of India in its meeting said that the changes have been made to improve account management and ensure that customers maintain adequate balances. The penultimate change will help banks with liquidity management, reducing problems caused due to zero or low balances in bank accounts.
Who Will Be Affected
The new rule will mainly affect urban and semi-urban branches where there is a higher minimum balance requirement. Rural account holders and some special categories may be exempted, but a majority will have to abide by the ₹10,000 minimum balance rule.
Penalties
The penalty is imposed at 6% of the shortfall when the customer fails to maintain the balance. For example, if in your account ₹7,000 is there as against ₹10,000, the shortfall is ₹3,000. In this case, you may be penalised to the extent of ₹180.
Steps That Customers Should Take
There should be a certain amount in the account to meet minimum balance requirements. Hence, by frequently checking balances, setting alerts, and withdrawing amounts carefully, a customer can avoid unnecessary charges.
Conclusion
From September 15 onwards, it shall be clear that keeping the minimum balance required in your bank accounts is an utmost priority for you. Customers need to plan accordingly to avoid a 6% penalty and have smooth running of the accounts.