Penalty For Minimum Balance Must Go

It refers to shocking report about total rupees 4988 crores combinedly imposed by all banks including private and public-sector banks with major share grabbed by private-sector banks. Major share in such penalty is for not keeping mini­mum balance in accounts. At a time where Central Government is insisting on banking transactions with introduction of zero-balance bank-accounts un­der Pradhan Mantri Jan Dhan Yojna, it should be en­sured that requirement of Minimum-Balance in all types of bank-accounts for both public and private sector banks be abolished.

Private banks have too many hidden charges including various types of penalties with differ­ent rate-structures. Department of Financial Ser­vices – DFS and Reserve Bank of India -RBI should introduce common rates of penalties imposed by banks. Private and public sector banks should com­pete through better services rather than having right to impose penalties as a measure to increase profitability to counter losses due to Non Perform­ing Assets -NPA. Common persons must not suffer through money-minting penalties to counter losses due to NPAs.

Madhu Agrawal

E-mail [email protected]

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