RBI: With the advent of smartphones and the migration of banking services online, traditional bank queues have become a thing of the past. However, the convenience of digital banking has also brought about its own set of challenges, particularly for individuals with multiple bank accounts.
Relief for Bank Customers as RBI Introduces New Rules
A common issue faced by such individuals is the difficulty in maintaining minimum balances across all accounts, often resulting in accounts slipping into negative balance territory. In the past, closing such accounts would entail paying off the negative balance, adding to the financial burden of customers.
In a bid to address this concern and provide relief to affected customers, the Reserve Bank of India (RBI) has implemented new guidelines. According to these rules, banks are prohibited from charging interest or penalties on accounts with insufficient funds, thereby preventing balances from dipping into the negative.
Even if an account shows a negative balance, banks are legally barred from demanding repayment from the account holder
Crucially, under the new regulations, customers are not obligated to settle negative balances when closing their accounts. Even if an account shows a negative balance, banks are legally barred from demanding repayment from the account holder. This translates to the closure of bank accounts without any additional charges or penalties imposed on customers.
The move by the RBI aims to safeguard the interests of bank customers and ensure fair treatment in cases where maintaining minimum balances proves challenging. By alleviating the financial burden associated with negative balances, the new rules offer much-needed relief to individuals grappling with multiple bank accounts.
Overall, the introduction of these regulations reflects the RBI’s commitment to fostering a more transparent and consumer-friendly banking environment, where customers can access services without undue financial strain or coercion.
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