Bank should inform the customer immediately on breaching minimum balance before charging the minimum balance charges – RBI notification

RBI has issued a notification which makes the banks mandatory to inform the customer immediately on the balance in the account breaching minimum balance and the applicable penal charges for not maintaining the balance by way of SMS/Email/letter. When the minimum balance is not maintained within one month from the date of notice of shortfall, … Read more

Limit of free ATM transactions in other bank is revised from 1st November 2014

Reserve bank of India has issued the notification as on 14th August 2014 and instructs the all commercial and co-operative banks for rationalization of number of free ATM transaction. The number of the ATMs is increased to 1.6 lacks across the country by March 2014. Few banks and Indian Bank’s Association had approached the RBI … Read more

RBI extended the date to 1st January 2015 for exchanging the pre-2005 issued currency notes

                RBI has issued the press released as on 3rd March 2014 and extended the date of exchanging the currency note to 1st January 2015. It is also informed that majority of notes which was issued prior to 2005 are already been withdrawn through banks and only a limited number of notes remain with the … Read more

Highest interest on saving account paying banks in 2014

Saving Accounts Most of salary earners use the saving accounts in India. Account holder can withdraw the amount any time form ATM or by issuing cheque / withdrawal Slip. All the Nationalized Banks, Private Banks and all cooperative banks provide saving bank account facility. The account holder is required to maintain the minimum balance according … Read more

Banks are not permitted to charge foreclosure charges/pre-payment penalties on home loans on floating interest rate basis

RBI/2011-12/589 DBOD. No. Dir. BC.107/13.03.00/2011-12 June 5, 2012 All Scheduled Commercial Banks(Excluding RRBs) Dear Sir/Madam Home Loans-Levy of fore-closure charges/pre-payment penalty Please refer to our circular DBOD. No. Dir. BC. 56/13.03.00/2006-2007 dated February 2, 2007 on reasonableness of bank charges. 2.  In this context, attention is invited to paragraphs 81 to 83 of the Monetary Policy Statement 2012-13 announced on … Read more