The RBI has finally imposed penalties on a bank for charging non-maintenance penalties from their customers. On May 27, 2024, the RBI imposed a penalty of Rs. 91 lakhs on Yes Bank for charging non-maintenance penalties from their customers' savings accounts even when their account balance was zero.
There is a guideline from the RBI that banks cannot charge non-maintenance fees from a customer's bank account if the account does not have a positive balance.
I have made a video about this RBI guideline in the past; here is the video link: Watch on YouTube [Negative balance in your savings account? Know how to fix the issue 🔥🔥🔥]
As per the RBI guideline "Levy of penal charges on non-maintenance of minimum balances in savings bank accounts" dated November 20, 2014, point no. 5(vi): "It should be ensured that the balance in the savings account does not turn into a negative balance solely on account of levy of charges for non-maintenance of minimum balance."
However, Yes Bank was found charging their customers non-maintenance penalties even when their account balance was zero.
What is a non-maintenance penalty?
Almost all banks require their customers to maintain a certain balance in their savings accounts. If the customer doesn't maintain the required balance, the bank charges a non-maintenance penalty from the customer's bank account.
This is great news—at least the RBI is working to make our banking system more ethical for customers. I'm sure hundreds of customers are also facing the same problem with different banks. Many banks still don't follow this specific guideline, and I hope the RBI will address those banks as well. Once, AU Small Finance Bank charged me non-maintenance fees even when my account balance was zero. I complained to the RBI, and I got a full refund.
Be informed, never just listen to the bank. Do your own research, and if you think there is a problem, file a complaint. Finally, join the TF Community—I can guarantee you’ll be saved from many future banking-related problems.
There is a guideline from the RBI that banks cannot charge non-maintenance fees from a customer's bank account if the account does not have a positive balance.
I have made a video about this RBI guideline in the past; here is the video link: Watch on YouTube [Negative balance in your savings account? Know how to fix the issue 🔥🔥🔥]
As per the RBI guideline "Levy of penal charges on non-maintenance of minimum balances in savings bank accounts" dated November 20, 2014, point no. 5(vi): "It should be ensured that the balance in the savings account does not turn into a negative balance solely on account of levy of charges for non-maintenance of minimum balance."
However, Yes Bank was found charging their customers non-maintenance penalties even when their account balance was zero.
What is a non-maintenance penalty?
Almost all banks require their customers to maintain a certain balance in their savings accounts. If the customer doesn't maintain the required balance, the bank charges a non-maintenance penalty from the customer's bank account.
This is great news—at least the RBI is working to make our banking system more ethical for customers. I'm sure hundreds of customers are also facing the same problem with different banks. Many banks still don't follow this specific guideline, and I hope the RBI will address those banks as well. Once, AU Small Finance Bank charged me non-maintenance fees even when my account balance was zero. I complained to the RBI, and I got a full refund.
Be informed, never just listen to the bank. Do your own research, and if you think there is a problem, file a complaint. Finally, join the TF Community—I can guarantee you’ll be saved from many future banking-related problems.
