New Regulations from the RBI Regarding the Minimum Balance in Bank Accounts will Applicable from the 1’st.

Minimum Balance -Reserve Bank of India keeps taking decisions from time to time in the interest of the people. Recently, Reserve Bank of India (RBI) has made major changes regarding minimum balance in accounts. If you have a bank account, then it is very important for you to know what is the minimum balance to be maintained in the bank account. Why many times the bank closes the account or imposes charges for not maintaining minimum balance in the accounts. In such a situation, if the bank deducts money from your account, you can also complain. But now it will not be needed. Because recently RBI has made new rules regarding minimum balance. After their implementation, penalty will not be imposed for not maintaining minimum balance.

The Reserve Bank of India has told banks that they cannot impose penalty on accounts which are inactive i.e. in which no transaction has taken place for more than two years, for not maintaining the minimum balance. It also said that banks cannot classify accounts created to receive scholarship money or direct benefit transfer as inoperative, even if they have not been used for more than two years.

What else is there in the new rules of RBI-

RBI also said that banks cannot classify accounts opened to receive scholarships or direct benefit transfers as inoperative. Even if these accounts have not been used for more than two years. RBI has issued a circular for inoperative accounts. Through which instructions have been given to the banks.

RBI said in its circular that these instructions seek to reduce unclaimed deposits in the banking system and return such amounts to their rightful claimants.

How Bank Contacts there Customers-

According to the new rules of RBI, banks will have to inform the customers about their accounts being deactivated through SMS, letter or mail. The circular also asked banks to contact the person who introduced the account holder or the nominee of the account holder if the owner of a dormant account does not respond.

No charge for activating account-

According to the new circular of RBI, banks are not allowed to impose penalty for not maintaining minimum balance in deactivated accounts. According to the rule, no charge will be taken for activating the deactivated accounts.

According to the latest report of RBI, there has been an increase of 28 percent in unclaimed deposits by March 2023 and it has reached Rs 42272 crore. Banks will transfer the balance of those deposit accounts which have not been operated for 10 years or more to the Depositor and Education Awareness Fund of RBI.

Earlier, RBI had directed the banks to ensure that the balance in the accounts does not become negative due to penalty charges for not maintaining the minimum balance. Even after this, many banks continue to impose penalty.

The Reserve Bank of India (RBI) has made a big announcement regarding loans and EMIs. The bank has given relief news to the loan taking customers. The bank has issued new guidelines regarding penal charges and interest rates. New rules have been made to bring more transparency in penal charges and interest rates. And these rules have come into effect from 1st.

Why the rules changed?

RBI said many use penal charges in case of default or non-compliance with those conditions on the part of the borrower. This also applies to the conditions under which a loan is available. To maintain discipline in banks, RBI said that banks should not make penal charges a source of income. Many organizations earn money through penal charges. Keeping these things in mind, the Central Bank has issued this guideline.

Reserve Bank of India instructions

If the bank charges any penalty then it will be considered as penal charge. This is not penal interest. It is not directly linked to the rate of interest.

Banks are not permitted to offer additional components.

There should be a board approved policy for any penal charge.

The bank should not discriminate regarding any loan or product.

These rules will apply to the banking institution. This includes commercial banks, co-operative banks, NBFCs, housing finance companies and other institutions like Exim Bank, NABARD, NHB, SIDBI and NABFID.

If you are not able to Repay the Loan then Definitely know these rules of RBI –

If you have taken a car loan, home loan or personal loan from any bank, but you are facing difficulty in repaying it. Then instead of becoming a defaulter, it is better that you know these rules and regulations of the Reserve Bank of India (RBI). Firstly, it will save you from being a defaulter, secondly it will also help in reducing the interest or EMI of your loan.

Increase in the figures of taking loan from credit card-

‘Credit Information Bureau India Limited’ (CIBIL) is responsible for monitoring the spending habits of people in the country through loans or credit cards. There were many shocking revelations in one of its reports last year, in which it was said that people taking unsecured loans (spending from credit cards) is increasing, while personal loans have also increased to higher levels than before Covid. This report served as a warning to RBI.

RBI gave relief to loan defaulters-

To provide relief to those who were facing difficulty in repaying the loan, RBI has made several guidelines. This is like a relief for loan defaulters, because because of this they get more time to repay the loan.

Up to half the loan may be restructured

Suppose you have a loan of Rs 10 lakh, but you are not able to repay it in full. So according to the guidelines of RBI you can get it restructured. In such a situation, you will have to pay Rs 5 lakh then, you can repay the remaining Rs 5 lakh gradually over a long period. In this way your EMI burden will also be reduced.

CIBIL gets spoiled due to defaulter

Certainly, restructuring the loan is a better option for you, because it removes the tag of loan defaulter from you. Being a loan defaulter of a person spoils both his credit history and health. Due to this, your CIBIL score also deteriorates, which closes the doors for you to take loan in future.

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