Rs 5,000 too much? Steps to close SBI savings account!

[logistopath]

^^ As per RBI mandate, banks cannot levy penalty beyond the amount present in your account, such that your account balance goes into negative. So once your account balance becomes zero, and you do not do any transactions using the account for a long time (varies from bank to bank I think, but probably 2 years), your account becomes dormant, and many features in the account are restricted. That is the most that can be done. There is no outstanding amount.

They pull the full credit history.

Again, it is only the credit history. Savings bank accounts are not credits from the bank. As far as the transparency thing goes, I have no idea. But if your bank charges penalties for insufficient balance and makes your balance in negative, you can ignore it, especially if you have no intention of using the account again. They have no legal case for that.

 

[6pack]

Another RBI policy is once a bank account is dormant, the bank cannot levy any charges on it. They can only pay you interest on the amount remaining in the account.

 

[NotMyRealName]

In theory, assuming the dormancy requirement is ~6 months to 2 years, if your account blance is zero, it will start accumulation penalty for non maintenance of minimum balance right? This will keep adding up till the account is actually set to dormant (6m to 2y) and then your balance would be in the negative?

 

[Rockfella]

CIBIL scores are based solely on credit related transactions (credit cards or loans availed). Bank account balances cannot and will not reflect on credit scores.

It shows up on my CIBIL. It is just good practice to close dormant accounts.

 

[Rockfella]

^^ As per RBI mandate, banks cannot levy penalty beyond the amount present in your account, such that your account balance goes into negative. So once your account balance becomes zero, and you do not do any transactions using the account for a long time (varies from bank to bank I think, but probably 2 years), your account becomes dormant, and many features in the account are restricted. That is the most that can be done. There is no outstanding amount.

Again, it is only the credit history. Savings bank accounts are not credits from the bank. As far as the transparency thing goes, I have no idea. But if your bank charges penalties for insufficient balance and makes your balance in negative, you can ignore it, especially if you have no intention of using the account again. They have no legal case for that.

The way things are changing it is simply not worth to take the risk. I would simply close the account or use it.

 

[6pack]

In theory, assuming the dormancy requirement is ~6 months to 2 years, if your account blance is zero, it will start accumulation penalty for non maintenance of minimum balance right? This will keep adding up till the account is actually set to dormant (6m to 2y) and then your balance would be in the negative?

Not really, once your account becomes zero the bank cannot levy charges on it. See logistopath's post. Banks cannot levy penalty beyond amount present in your bank ac. Zero money = no penalty. The only thing they can do is to lock your account now. Locked accounts become dormant in a year or two if there is no transactions done on that account.

 

[NotMyRealName]

So that means if an a/c's min balance requirement is 5k, and the penalty is Rs 300, I would only be charged that penalty if my balance is between Rs. 300 and 4999 ? What happens if i have say 200 Rs. in the account?

 

[6pack]

No penalty.

What happens if you try to take more money out of your account than it has? Transaction declined right? Banks don't have any special software that will take 100 extra from your account. That 100 is still loss to them if they decide to take the remaining 200 rupees from the account.

 

[NotMyRealName]

So isn't this an awesome way to get around the minimum balance requirement? Always keep more than the amount or less than the penalty amount!

Not very practically doable though...

 

[swatkats]

No need to close now

https://www.facebook.com/notes/stat...age-minimum-balance-upto-75/1799042463479877/