The Reserve Bank of India has asked banks not to levy penalty on non-maintenance of minimum balance in ordinary savings bank accounts and instead limit the services. The central bank said in its first bi-monthly monetary policy that 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. The RBI also directed banks not to levy penal charges for non-maintenance of minimum balances in any inoperative account. In another directive, the regulator asked the bank to limit the liability of customers in electronic banking transactions in cases where banks are not able to prove customer negligence.
