It has been reported that recently the apex bank of the country has ordered the bank to do away with the practice of imposing fines on customers who do not maintain a minimum balance in their savings accounts. RBI has asked the banks instead of charging on savings account they should limit the services.
Further RBI has also asked not to charge on the dormant accounts. CEO and MD of the HDFC bank stated that if the banks remove this penalty then customers may have to bear higher cost, as the banks could charge the customers for ATM transactions and other services. He further added that banks bear a cost of maintain savings account. Yesterday in the review of the policy the RBI held the interest rates same at 8%. It has also asked banks to limit the liability of customers in electronic banking transactions in cases where banks are not able to prove customer negligence.