Does the RBI Circular On MAB Applies to Current Account Too?

[bijay.nayak]

As Per RBI Circular: https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=1500

Banks Can Charge MAB But It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
By Using the above statement I removed the negative balance on my HDFC Savings Account.

Now my Query is does the Same Thing Applies to Proprietorship Current Account. I have One Account in RBL bank and since that Business is closed they were charging 600 Rs per month and turned my account negative.

 

[BabluDon]

As Per RBI Circular: https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=1500

Banks Can Charge MAB But It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
By Using the above statement I removed the negative balance on my HDFC Savings Account.

Now my Query is does the Same Thing Applies to Proprietorship Current Account. I have One Account in RBL bank and since that Business is closed they were charging 600 Rs per month and turned my account negative.

does this rule apply to all types of charges like ECS return fees, SMS alerts, etc.?
Like, can banks not take the balance into negative for those as well?

 

[drvirag]

does this rule apply to all types of charges like ECS return fees, SMS alerts, etc.?
Like, can banks not take the balance into negative for those as well?

No only for mab

 

[BabluDon]

No only for mab

Got it, thanks!

 

[drvirag]

As Per RBI Circular: https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=1500

Banks Can Charge MAB But It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
By Using the above statement I removed the negative balance on my HDFC Savings Account.

Now my Query is does the Same Thing Applies to Proprietorship Current Account. I have One Account in RBL bank and since that Business is closed they were charging 600 Rs per month and turned my account negative.

Only savings ac is mentioned. I dont think its for current ac as well. Any bank ppl can tell better.

 

[pradeepG]

not applicable generally on current account, though managers can waive or settle in between, Surely applicable for savings account.