The Reserve Bank of India (RBI) has recently issued new rules regarding negative balance, which aims to protect the interests of bank customers and ban the arbitrariness of banks. These rules will benefit the account holders, which will give them relief from economic losses and troubles.
What will be the benefit to customers?
If there is no minimum balance in the bank account, the banks apply penalty monthly, which gradually makes the balance negative in the account. In such a situation, when the customer wants to close his account, the banks demand them to repay the negative balance. According to the new RBI rules, banks cannot do this now. Customers can close the account with negative balance without paying any amount.
The main objective of RBI’s new rules
The RBI has made it clear that if there is no minimum balance, the bank’s penalty can be zero, but it cannot be done in minus by imposing interest. Banks cannot demand the amount of negative balance from customers. If the bank does so, customers can complain to RBI.
Right of account holder
- The customer will have the right to close a negative balance account without paying any additional fee.
- Banks cannot demand negative balance from the customer under any circumstances.
Instructions for bank and account holder
- Banks will have to strictly follow these rules of RBI.
- Customers understand their rights and can close their account without any additional payment.
RBI benefits of new rules
- There will be economic security of customers.
- The arbitrariness of banks will be curbed.
- Customers’ rights will be protected.
The post RBI Negative Balance Rules: Ban on negative balance and minimum balance penalty in bank accounts first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
