The Reserve Bank of India through a circular informed the banks that they cannot impose penalty for not maintaining minimum balance on inoperative accounts. According to RBI website if there is no transaction in the account for more than two years
RBI Guidelines: The Reserve Bank of India through a circular informed the banks that they cannot impose penalty for not maintaining minimum balance on inoperative accounts.
According to the RBI website, savings and current accounts should be considered inactive if there has been no transaction in the account for more than two years. Accounts which have not been operated upon over a period of two years should be separated and maintained in separate books of accounts.
Additionally, the circular states that accounts created for scholarship money or direct benefit transfer will not be considered inoperative even if they are not used for more than two years.
When will the new rules come into effect?
According to the new rules, ‘Banks are not allowed to levy penal charges for non-maintenance of minimum balance in any account classified as inoperative account. No fee will be charged for activating inactive accounts. Let us tell you that the new rules will come into effect from April 1.
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