Can bank waive off non-maintenance charges?

Can bank waive off non-maintenance charges?

Banks are allowed to charge non-maintenance of minimum balance penalty to the customers but there is no cap on the charges. The penal charges have to be approved by the bank’s board.

What happens if bank account is not used for long time?

If you haven’t used your savings or current account for any transactions for over 1 year, the account becomes inactive. If the account has been inactive for 2 years, it becomes dormant or inoperative. If you don’t pay heed to managing your inactive bank account it can cost you money.

Why do banks charge minimum balance fee?

Banks require minimum balances for a variety of reasons. It allows the bank to have more deposits, which in turn allows them to lend more money and maintain certain regulatory financial ratio requirements. It also allows them to profit from fees if balances are not maintained.

What is the minimum balance required in HDFC Bank to avoid penalty?

For regular savings accounts held in HDFC Bank ‘s metro and urban branches, the customer is required to maintain an average monthly balance of ₹ 10,000 to avoid penalty charges, according to the lender’s website – hdfcbank.com. In semi-urban branches, an average of ₹ 5,000 is required.

What are the HDFC Bank regular savings account rates & fees?

The HDFC Bank Regular Savings Account Rates & Fees are as follows: Description of Charges. Regular Savings Account. Minimum Average Balance Requirements. Metro / Urban branches: AMB Rs.10,000/-, Semi-Urban Branches: AMB Rs.5,000/- , Rural Branches: AQB Rs.2,500/- or Fixed Deposit of Rs. 10,000 for minimum 1 year 1 day period.

Should banks charge for non-maintenance of minimum balance in savings accounts?

Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level.

What is the average monthly balance of HDFC Bank in India?

HDFC Bank has set an average monthly balance of ₹ 10,000 for the regular savings accounts in its metro and urban branches. In its semi-urban branches, customers are required to maintain a monthly average (AMB) of ₹ 5,000 in their regular savings accounts, according to the HDFC Bank website.

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