No minimum balance charges on ‘inoperative A/cs’: RBI

The RBI has said that banks cannot impose a penalty for not maintaining minimum balance on accounts that are inoperative — those that have not recorded any transaction for over two years. It also added that banks cannot classify accounts created for receiving scholarship money or direct benefit transfers as inoperative even if they have not been used for over two years.

The directive to banks are a part of RBI’s new circular on inoperative accounts — and part of its efforts to bring down the level of unclaimed bank deposits. The new rules come into effect from April 1.

“These instructions are expected to complement the ongoing efforts and initiatives taken by banks and RBI to reduce the quantum of unclaimed deposits in the banking system and return such deposits to their rightful owners/claimants,” RBI said in its circular.