Minimum Balance Penalty: If you have an account in the bank, then it is necessary to keep a minimum balance in it. But, sometimes our balance is less than minimum. In such a situation, the bank Penalty It applies But, now there is news of relief for those who do not keep minimum balance because some banks minimum in savings account (savings account) Balance Has ended the imperative to maintain. Let us know which banks have made this change, who will benefit from it and what is the thinking of the government and the Reserve Bank behind it.

What is the minimum balance rule

The minimum balance rule in a savings account means that the bank account holder has to maintain a certain minimum amount in his account at all times. If the customer violates this rule, the bank charges penalty, which can be 100 to 500 rupees or more. Customers of rural and lower-age class were often punished due to this. Now many banks have abolished this imperative, which will give great relief to common customers.

Which banks made changes

Some major banks have abolished the minimum balance mandatory in a savings account. Prominent among them are:

State Bank of India (SBI): The country’s largest public sector bank is already offering zero balance account facility. Now the requirement of minimum balance on regular savings accounts has also been reduced.

ICICI Bank: This private bank has removed the requirement of minimum balance for some types of digital saving accounts.

HDFC Bank: HDFC has also launched Zero Balance Digital Saving Accounts to woo some new customers.

PNB, Bank of Baroda and Union Bank: These banks have also abolished the compulsion of minimum balance in some categories in a phased manner.

What benefits will customers get

Customers will have the following benefits due to removing the rules of minimum balance

• No penalty- by which customers will feel more freedom in withdrawing money.
• People of rural and low income groups will get easy banking facilities.
• Opening and running digital savings accounts will now be more simple and free.
• Even in small accounts, people will get a chance to earn interest, no matter how low the balance is.

The purpose of government and RBI

• Crores of poor were linked to banking through Jan Dhan Yojana.
• Now these people will not be compelled to keep money in a savings account for a long time.
• RBI has suggested to banks to provide customer -centric services and simplify banking.

These customers will still have to keep minimum balance

It is worth noting that this rule has not been removed on all savings accounts. The accounts of minimum balance may still be applied in accounts in which special facilities are being provided (such as checkbooks, ATMs, premium services).

Removing the requirement of keeping a minimum amount in a savings account is a relief step for the common people. This change will not only promote financial inclusion, but will also make small accounts respectable and safe.