Wednesday, April 2, 2014

RBI To Banks - No Penalty For Balance Below Min. Limit… Err… RBI Sure Took It's Time!


MUMBAI: Customers may soon be spared penalties for non-maintenance of minimum balances in savings accounts with the Reserve Bank India asking banks to cut down services on low-balance accounts and do away with fines. Banks however say the new regime will lead to higher charges on services for customers.


Not getting into what 'services' will be cut down and what new charges could be imposed, I just want to highlight that this (no penalty for balance below min. limit) was a directive issued by the High Court in AUGUST 2011 [Link, TOI Link].

Now… will someone please point out WHY it took RBI over 2 years to discuss the issue with stakeholders and make the damn thing official? We all realise that a policy change requires work to be done and can not be done overnight, but over 2 years? Is THAT reasonable?

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