FAQs
Mumbai: The RBI has said that banks cannot impose a penalty for not maintaining minimum balance on accounts that are inoperative — those that have not recorded any transaction for over two years.
Is there any minimum balance charges for inoperative account? ›
No charges shall be levied for activation of inoperative accounts," the rules said.
Is Indian bank charges for not maintaining minimum balance? ›
Though Indian Bank does not charge any fee if you do not maintain the minimum balance of Rs. 500, it is advised to maintain that balance.
What happens to inoperative bank accounts in India? ›
A dormant bank account becomes inactive if there are no customer-initiated transactions for more than two years. Reactivating the account is a simplified process that involves re-submitting identification documents. Unclaimed deposits are transferred to the Depositor Education & Awareness Fund overseen by the RBI.
What is the new rule of zero balance? ›
According to the new guidelines by Reserve Bank of India (RBI), you can have only one Zero Balance Account in one bank. Furthermore, if you have a Zero-Balance Savings Account in one bank, you cannot hold any other Savings Account of other capacity in the same bank.
Can I withdraw money from inoperative account? ›
You cannot make payments, transfer money, make withdrawals, orlog into your account when it is inoperative. To reactivate an inoperative account, you need to contact the bank, fill out a form and provide the necessary documentations, and make at least one transaction therafter.
Is there any penalty for inoperative account? ›
Are there any charges to be levied? The RBI has made it clear that the banks are not permitted to levy penal charges for non-maintenance of minimum balances in any account that is classified as an inoperative account. No charges will be levied for activation of inoperative accounts.
What is the minimum balance in Indian Bank 2024? ›
Minimum Balance in Indian Bank Savings Account 2024
Type of Savings Account | Average Monthly Balance |
---|
Savings Bank Account | Rs. 500 |
IB Smart Kid | Rs. 100 |
SB Platinum – Savings Bank Platinum Account | For individuals: Rs. 750,000 per month and for Non-individuals: Rs. 1,000,000 |
Indian Bank – Sammaan | Nil |
10 more rowsOct 24, 2023
How much central bank of india charges for not maintaining minimum balance? ›
Cent Premium
Features/Benefits | Rural | Urban |
---|
ATM cum debit card | Free | Free |
Facility of internet/SMS/mobile banking | Free | Free |
Preferred banking services | Free | Free |
Non-maintenance of minimum quarterly balance charges on a quarterly basis | Rs. 200 | Rs. 750 |
3 more rowsJan 17, 2024
What happens if there is no minimum balance in account? ›
Banks usually charge penalty fees if the minimum balance requirement is not met. These charges vary from bank to bank and may be deducted directly from the account balance. The bank may notify the account holder through SMS, email, or physical mail if the account falls below the minimum balance threshold.
The Reserve Bank of India (RBI) recently issued a new framework on Domestic Money Transfer (DMT) for regulated firms, making stricter Know Your Customer (KYC) record standards, focusing on banking services, payment systems. The new guidelines will come into effect from November 1, 2024.
How do I reactivate my inoperative account? ›
A request should be given to the branch for activation of account. Branch will activate the account based on the KYC documents submitted by the customer. Customer will be informed through SMS / e-mails on activation of account.
Can I deposit money in an inoperative account? ›
Activities Restricted in a Dormant Account
A dormant account can include no deposits, debit or credit transactions, ATM withdrawals, or automated transactions. While the account is still there and may continue to earn interest, it can limit what you can do with it. For example, you might not be able to: Write cheques.
What is no minimum balance requirement? ›
No-minimum checking accounts can help you save money
Some checking accounts require you to have a certain amount of money in your account in order to avoid fees. A no-minimum-balance checking account doesn't have this requirement — so it could save you from worry and extra charges.
What are the disadvantages of zero-balance account? ›
Disadvantages of Zero Balance Savings Accounts
This may include a limited number of free chequebooks, fewer online banking facilities or a cap on the number of free transactions per month. 2. Potential for mismanagement: The absence of a minimum balance requirement could lead to less disciplined financial management.
Are there any charges for a zero-balance account? ›
A zero-balance account refers to a savings bank account, which has a zero balance in it and yet not charged. It is legally known as Basic Savings Bank Deposit (BSBD) account as per the Reserve Bank of India (RBI) guideline.
Can banks charge you for inactivity? ›
An inactivity fee is a service charge imposed by a financial institution when there is no activity in a client's account during a specified time period. Banks may charge checking or savings account holders an inactivity fee if there are no deposits, withdrawals, transfers, or payments through their accounts.
Do we need to pay charges for dormant account? ›
Are there any charges for making a dormant account operative? No charges will be levied for making an inoperative account active. Banks are also not permitted to levy penal charges for non-maintenance of minimum balances in an inoperative account.
Can banks charge for minimum balance? ›
In the occasion of your balance going below the minimum requirement, banks charge for extra for regular services, and may also charge some penalty or fees. These fees also depend on the bank. Consider looking carefully at these charges before opening a bank account.