Some Banks Continue to Levy Minimum-Balance Penalty Defying Promise Made by FM

Moneylife Digital Team 17 April 2020

Consumer Interest

In a major relief, finance minister Nirmala Sitharaman had announced in the last week of March that charges for non-maintenance of minimum bank balance charges would be waived off (for three months up to June 2020) for savings bank accounts in order to help citizens deal with the lockdown due to the coronavirus crisis. She had also mentioned that cash could be withdrawn from any bank automated teller machine (ATM) for these three months without incurring any additional bank fees.

It now turns out that some banks have turned a blind eye to the first one at least and continue to levy hefty non-maintenance penalties on innocent poor people. Here is what some of them had to say on Twitter...

.@nsitharaman announced:

-No min balance charges for 3 months
-#Farmers will get Rs 2,000 #PMKISAN

This Bank is deducting money from this #farmers account, from the Rs 2000, you sent, citing min balance conditions. #CoronaOutbreak

Ÿ‘‰Empty announcements r called "shams" madam ! https://t.co/b1LWa819Ty
— Ramandeep Singh Mann (@ramanmann1974) April 12, 2020

@ramanmann1974 6-4-20•‹ • ‹œ • 2000 ‚ †‡ ‡ ” 7-4-20 •‹ — •Ÿ‡1034 ˆ‡‚ €‚ ‹‡ • œ ‡ ” • • •‡ … † •‡ ‡ • ˆ• —‹‡ ‹—‹ •€ ‚ • ‡ • ‡ ˆ‚ ‚‡ ‡‚ •‡ ‹—‹ •‡ •Ÿ‡ ‹—‡ pic.twitter.com/yE0hLPR3kx
— Ratti Ram Jat (@jat_ratti_rlp) April 12, 2020

@AxisBankSupport @amitabhchaudhary @RBI @narendramodi Sir plz cancel & terminate the banking license of axis bank for harassing & cheating poor & common main times of Covid-19. Banks still violating the rules of Government of India & RBI. MAb penalty of Rs 175 not removed from ac
— Bharat Bhushan Goyal (@BharatB79109758) April 13, 2020

Wen msme are locked down banks are charging minimum balance maintanence charges from Msme and private schools are demanding advance fees and also we are paying salary to staff in lockdown...we will not be able to survive modiji
— nitin.abhushan (@NitinAbhushan) April 16, 2020

@AxisBank @AxisBankSupport @PMOIndia @nsitharaman @OfficeofUT Even after the Gov if INDIA has told not to collect charges for maintaining minimum balance my account has been debited by Rs 500 + taxes, plz do something as these banks are behaving ruthlessly. pic.twitter.com/lVgpugdnBb
— deepak (@deepakyadav8914) April 15, 2020

@AllBank1865 @MyIndianBank @RBI @nsitharaman despite of the details about no bank being allowed to cut money for minimum balance in accounts my money has been debited because of the same reason....is this how @RBI governs the banks..for taking money in this crisis pic.twitter.com/ziabne9cmL
— Vatsal Singhal (@VatsalSinghal9) April 16, 2020

@RBI @nsitharaman @AxisBank Even though RBI has given some relaxations because of COVID-19 in terms of charges debited by banks. Still they debit charges for Non maintenance of Minimum balance for the month of March. Same happened to me as well.
— Jagadeesh (@jagadeesh0907) April 15, 2020

@PMOIndia Request you Sir that no minimum balance required in any account (saving current etc) of banks. If we were maintaining the balance then what we will eat or if we use money to buy food then bank charged minimum cash limit fine.
Please sir think about this.
— Micky (@Micky20829093) April 15, 2020

@AxisBank debited my account with bank charges. You do not have control over pvt banks. FM clearly said there will be no minimum account balance charges during lockdown period. #axislutara #banking #bankfraud . FM should resign if they cant make follow there guidelines. SHAME pic.twitter.com/TNYu90aSxH
— Ricky Garg Ÿ‡Ÿ‡ (@rickygarg86) April 14, 2020

Some even wrote that the finance ministry must do something to clarify and intervene.

Came to know this morning that Banks continue to debit MINIMUM BALANCE CHARGES from the customer accounts!
If true then it is really insensitive, unfair on the part of Banks to do so during the times of financial difficulties.
Ministry of finance should intervene/ clarify
— …ƒ (@HiranSharma4) April 16, 2020

Respected Prime Minister,
I came to know this morning that the banks are continuing with the practice of debiting MINIMUM BALANCE CHARGES from customer accounts.
If it is true then this is very UNFAIR during such financial crisis.
Please intervene and stop this till recovery
— …ƒ (@HiranSharma4) April 16, 2020

The finance ministry has clarified that Rs9,930 crore has been disbursed to 19.86 crore women Jan Dhan account holders as on 13 April 2020. The question though is what about banks’ action? Unless the ministry intervenes and clarifies, banks will continue loot the poor and laugh their way to themselves.

Earlier on 11th March 2020, in a move that will benefit 44.51 crore savings bank holders, State Bank of India (SBI) announced that it has waived off the requirement of holding average monthly balance for savings accounts.

SBI customers now enjoy the zero-balance facility in their savings bank accounts. The bank has also waived off SMS charges levied on quarterly basis.

SBI had reintroduced minimum balance charges in April 2017 after five years of waiving it. The penalty for not maintaining a minimum balance was the cause of much heartburn as fines were levied on those who did not have enough money in their accounts.

Comments

User

m.gurdasani

6 years ago

PENALTY CHARGED WITHOUT INFORMING ACCOUNT HOLDER IS NOT ALLOWED. BANKS SHOULD RETURN THE AMOUNTS.

Kumar123

6 years ago

Just check. If FM said 3 months up-to June, then it means April, May June. The debits in first week of April could pertain to non maintenance in March. On a separate note, did you seek clarification from Axis Bank before publishing the story. Else it will be irresponsible and one sided.

viju2247

Replied to Kumar123 comment 6 years ago

Thumbs up for the reply. These reporters only know how to sensationalize news rather than going to root.