Change in eligibility criteria for bank account

[Bhavik567]

Hey everyone. Does anyone have a legal opinion if banks can increase the eligibility criteria for a particular type of account for existing account holders? Axis bank recently changed the criteria for Burgundy Private account holders and it seems they are expecting the existing account holders to fulfill the new criteria. Will this stand if someone complains to RBI? I always thought they would dilute the offering and unveil a new account type as their highest.

 

[Dazzwilliams]

Hey everyone. Does anyone have a legal opinion if banks can increase the eligibility criteria for a particular type of account for existing account holders? Axis bank recently changed the criteria for Burgundy Private account holders and it seems they are expecting the existing account holders to fulfill the new criteria. Will this stand if someone complains to RBI? I always thought they would dilute the offering and unveil a new account type as their highest.

I believe they reserve the right to modify the criteria as it's a business after all. You must have also signed the fine print somewhere during account opening

 

[Bhavik567]

Even with credit cards, they can devalue it but they can't cancel your credit card if they increase the fees, right? I had imagined RBI would be even more strict with bank accounts.

 

[Bhavik567]

Like imagine you were promised an account in return for a fat initial cheque or maintaining a balance for a specific time , only to find that they downgrade you a few months later.

 

[akshayhs]

Like imagine you were promised an account in return for a fat initial cheque or maintaining a balance for a specific time , only to find that they downgrade you a few months later.

I think it all comes down to negotiation skills. Yes as someone pointed above you might have given them a free hand when you signed up to the account under the then existing T&Cs. Just like how they can change criteria, you also have the free hand to close out the relationship citing new policies. When you do go to close, they would certainly want to retain you as a customer. If they do agree to retain you as per the old T&C, first get the same in writing preferrably on the bank's official letterhead or digitally in the form of an email and then decide whether you really want to continue or not.

 

[Dragon_slayer]

Hey everyone. Does anyone have a legal opinion if banks can increase the eligibility criteria for a particular type of account for existing account holders? Axis bank recently changed the criteria for Burgundy Private account holders and it seems they are expecting the existing account holders to fulfill the new criteria. Will this stand if someone complains to RBI? I always thought they would dilute the offering and unveil a new account type as their highest.

Whats the new creteria they are asking about ?

 

[Bhavik567]

Apparently, TRV doesn't include demat now.

 

[Riya Sharma]

Good riddance. Demat with Banks is not worth it most of the time. If you really are dealing with large enough funds to warrant a fully-fledged broker, then go with one who is only dealing with securities. Like Motilal, JM Fin, IIFL.

 

[Dragon_slayer]

Apparently, TRV doesn't include demat now.

So they want 5Cr in savings balance?

 

[Bhavik567]

FD, ULIP, Etc I guess