Can a private bank do this ?

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sam000

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Long time ago i opened a S/B account in bank "A"......after a couple of months i stopped using the account for a long time ......i know that bank "A" charges like Rs 1000(may be a bit less dont know exactly) if minimum account is not maintained....Now i am availing a credit card through FD in bank "B"....also i have moved to a new place so i really dont know how much bank "A" has charged me as penalty for not maintaining the account.Now my question is can bank "A" take money from my FD or S/B account in bank "B" forcefully ? :huh:

Both are private banks .Thanks :).
 
No I do not think that is possible in any way...

BANK A in no way can forcefully take money out of your ACC in BANK B...

Max BANK A can do is send you notices for the payment of your dues... If you do not respond they will freeze operation on your account till you pay the dues.
 
^^Ok that is good to know...cause i heard that private banks do ugly things if you owe them money......thats why asked.Thanks for the reply mate :).

I dont even know if my account is operational now but i have a debit card of bank "A" with me ....i havent even used it to check the status all this time :P.
 
Bank A cannot take money from bank B account

But they CAN report that you have pending payments to CIBIL,etc and I think that can have a negative effect on your credit limits and loan eligibility

OT: If you have a savings account with any bank, and a CC with the same bank, they CAN take money from your savings account if you dont pay the CC bill
 
Bank A wants you to have a minimum amount of money say X.

If you dont have that minimum balance then they will put a penalty ofK . Hence balance becomes X-K , after more time X-2K and so on.

You will lose money if you have any by this process.
 
mehrotra.akash said:
Bank A cannot take money from bank B account

But they CAN report that you have pending payments to CIBIL,etc and I think that can have a negative effect on your credit limits and loan eligibility
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That's right. CIBIL can be reported, and that is actually not desirable. You might as well close that account
 
sam000 said:
^^Ok that is good to know...cause i heard that private banks do ugly things if you owe them money......thats why asked.Thanks for the reply mate :).

If the amount is large, they probably will do horrible things :)

I dont even know if my account is operational now but i have a debit card of bank "A" with me ....i havent even used it to check the status all this time :P.
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I think after some 10 years or so the money will become the bank's, i.e. if you dont claim it for 10+ years, you will lose it
 
I don't think that anyone's money can become bank's money after n number of years.

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I have zero amount in bank A so no worry of them locking anything but what is this CIBIL thing ? why would they report it to that organization its not like i have taken some CC or personal loan from them and refused to pay it :S .
 
True man, Banks use this CIBIL advantage on very small issues. account not maintained, late payment or anything big or small, they will flag your name in CIBIL and once IN, it is very difficult to clear your name from that database as you're not authorized to do it; only a bank which has raised it can remove it.

So better sort out that account thing at the earliest. Anyways you've no money in it but bank is maintaining an account for you right, so I think they deserve a proper closure on these matters.
 
mehrotra.akash said:
Rs.1000 crore lying unclaimed with banks in India: RBI : Rupee Times

If any fixed deposit or saving account is not used for more than 10 years and lies unclaimed the funds are transferred from the concerned branch to the the bank's head office.

I stand corrected :)
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honest1 said:
Transfer to head office does not mean that it becomes bank's money!

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honest1 said:
Here you goState-run banks like SBI, Canara Bank, Union Bank and others to disclose details of unclaimed deposits worth Rs 1,700 crore - Economic Times

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yea.. thats why i said

I stand corrected
 
Na but its the onus on the bank to transfer the same to the legal heir.

But its obvious no bank will do the same and will simply state not defined.
 
@sam000,

you should close that account as the fine for non-maintenance of balance will be charged every quarter and I cannot be certain at what amount will they stop. According to the rules and the agreement you signed while opening the account, they can charge you indefinitely.

CIBIL maintains a credit history of individuals and provides it to financial institutions/banks when they ask for it. Your credit history is usually verified/checked when you apply for a loan, credit card and anything related to borrowing money from said banks.

CIBIL | Credit Reports, Credit Scores and Risk Management Solutions

Check with the bank's CC, you can get the balance of your account without even speaking to an individual. Whatever the case, this mistake of not closing the account will forever remain in your thoughts when applying for any sort of loan etc. If the fine for closing the account is high, you can even try to negotiate and get it reduced.

Please do not be careless about things involving money.
 
^^ I completely agree with above about not taking it lightly. CIBIL credit history is taken quite seriously these days. Negative rating might backfire when applying for loans, CC etc.

My friend had to get this sorted out when applying for home loan.
 
^^ I also had to face this issue because of crap Citibank who activated some health policy on my credit card and when I canceled the same, there were some charges of 700-800 levied for that(This all happened in 2007). I cut the credit card in pieces and threw the same. Last year when I applied for Home loan, bank told me that my CIBIL report says there is some 2500 outstanding.

However they did not care too much because it was a small amount as compared to the home loan amount and finally loan was sanctioned.
 
mehrotra.akash said:
Bank A cannot take money from bank B account

But they CAN report that you have pending payments to CIBIL,etc and I think that can have a negative effect on your credit limits and loan eligibility
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Exactly, even if Bank A wants to do it, Bank B would not allow it. Worst that will happen is that you will lose the ability to avail a home loan or credit card from any bank.
 
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