RBI asks banks not to levy penalty on savings account

BT Online Bureau    New Delhi   Last Updated: April 1, 2014  | 13:55 IST

The Reserve Bank of India has asked banks not to impose penalty for non-maintenance of minimum balance in ordinary savings account.

"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 monetary policy statement on Tuesday.

The RBI also directed banks not to levy any penal charges for non-maintenance of minimum balances in any inoperative account.

The banks were also asked to limit the liability of customers in electronic banking transactions in cases where banks are not able to prove customer negligence.

In a surprise move, the RBI in its monetary policy on Tuesday kept key rates unchanged.