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  • Category: Miscellaneous

    One Hundred and three rupees recovered by bank for not keeping 100 rupees minimum balance

    This relates to a recent real experience.

    My wife had opened a Savings Bank account in one of the nationalised banks in the last week of February 2017 by remitting the minimum needed one hundred rupees. The account did not avail cheque book facility or ATM card facility. The idea was to gradually add small amounts saved periodically from the limited income she/we have.

    But on 26 th March 2017 the bank recovered about 21 rupees for sms charges. The irony is that there was just one sms till then that also confirming the opening of the account. On the last day of March 2017 the bank again recovered Rs 51.76 as charges for not maintaining minimum balance. Can we imagine? The balance dropped only because the bank recovered charges without any prior intimation. The deficiency was for just 6 days in the month and due to the bank recovering a charge. And for that they recover more than fifty percent of the needed minimum balance. How unjust and cruel.

    In April second week, we remitted an amount many times more than the needed minimum to shore up the balance. In May last the bank again recovered 51.76 as minimum balance charges. We were shocked. Whatever way the bank may justify, in effect the bank has recovered Rs 103.52 as charges for not maintaining minimum balance of Rs 100 for just 22 days.
    What is the apt word to describe the bank's action?

    We have given a letter to the bank to reverse the recovered charges, as they are for no fault of ours. We have also requested them to cancel the sms facility forthwith as the charges do not reflect reality based charges. We are waiting for the results.

    I would like members to react on this and cite their own experiences if any.
  • #600226
    This is really unbelievable. How can they deduct such an amount for SMS. This is first time I am hearing that they are deducting SMS charges. I receive many SMS information from Bank. But never deduction is shown in my account. Banks are looting like this from comman man. We always say BJP is a people friendly party. But why they are allowing these things by banks. We have to resist these practices. When we transfer money from our account to other accounts also they are charging money. Monthly we do many money transfers. For that we are paying from our pocket.
    Public has to take it up strongly. If this kind of things goes on BJP will be at a loss. Government has to think seriously and stop this kind of activities. Rs.103/- recovery for not maintaining Rs.100/- minimum amount. Ridiculous. My experience is only levying of charges for money transfers, which is also not correct.

    always confident

  • #600227
    Just today morning I went to two Banks to ask about money debited from my account. Here's what happened -

    1. In the passbook of one Bank it was shown as 'DCARD Fee'. When I enquired, they said it was the annual fee for the debit card which I was issued. I said fine, then if it is annual charge, why was it twice deducted? Doesn't annual mean only once? Then followed a flurry of consultation with this one and that one and after much prolonged discussion, the passbook was taken away. I twiddled my thumbs and waited. After about 15mins. the pass book was handed back to me and a print out of a statement to show that the second time the wrongly debited amount was reversed and the amount credited back. So then only they flipped the pages back to show me where the amount got reversed back. I told them, too, that if the PM is encouraging cashless economy & so accordingly we are using a debit card, why on earth should we be charged a processing fee, albeit annual, for using it?!

    At this same bank, once the ATM outside did not give out the full amount entered using that Bank's card. It was right away brought to their notice, within 5 minutes. Requisite forms were filled, complaints made and yet nothing happened. I got the same idiotic reply every time I followed up on it, that "Madam, the ATM reports showed the transaction was done." Even the Chief Manager refused to do anything about it. Basically what was implied was that I lied and the ATM told the truth! Rs.400/- lost.

    2. At the other bank I went to find out why a series of small amounts were showing as debited against my FDs. It was written in the pass book as 'Shortfall recovery'. Now what on earth does this jargon mean? The bank staff said it was just TDS as per instructions of IT Dept. and that it was done for all customers. Uh? Should not the customer be informed? Should money be debited just like that? Can it not be mentioned also as 'TDS' instead of fancy words which sets us off into a panic - I mean, if you use a word like 'shortfall recovery' it sounds like I have done something wrong in my bank transactions!

    At this same bank, time and again they have debited from a family member's account annual maintenance charges for a debit card when in fact the card was returned right away as it was not wanted. Now there are constant visits to the bank to reverse the charges.

    When people come at you with their worst, you should come at them with your best (advice given to Selena Gomez by her mother, quoted in Time magazine.)

  • #600228
    I haven't had any such experience with banks, because I always ask questions, understand my liabilities. Though it is the duty of the bank to keep customers updated on charges and fines, it is also the customers' responsibility to asking probing questions and read through the form, before signing on the dotted line.

    My understanding is that banks charge a fixed sum, for SMSs irrespective of how many messages are sent. Since in this case there was no activity in the account the need for alerts was not there, but the facility has been agreed upon, and hence the charge. There is a check box provided in the account opening form where one can select if SMS alerts are required. If opted for these charges are levied quarterly or annually.

    Minimum balance also needs to be maintained per quarter, otherwise, a fine has to be paid.

    The only noticeable discrepancies here are that more money was deposited into the account and yet there's been a fine for not maintaining a minimum balance. And the SMS charges, which as far as I know are not charged for monthly.

    If you have not agreed to either of these charges, then you have every right to ask for your money. The bank is fleecing you.

    "A love affair with knowledge will never end in heartbreak" - Michael Garrett Marino

  • #600229
    Dr. N.V. Srinivasa,

    All banks have charges for getting SMS alerts. This is an option for the customer. You can opt out of it if you do not want the alerts. I have taken the facility for safety, as I know if some amount gets debited or credited right away and thus will be alerted to any funny business (what one would call hanky panky) with my account.

    When people come at you with their worst, you should come at them with your best (advice given to Selena Gomez by her mother, quoted in Time magazine.)

  • #600245
    This is one more example of how the banks are doing their dadagiri to recover petty amount from sincere account holders and ready to forgo big amounts in the name Mallyas. The other day the defaulter was simply enjoying the cricket match in London, and no police would arrest him and bring to India. On the other hand the banks are recovering petty amounts from the account holders as if we are big defaulters. By the way the so called sms charges are very high. They are sending group messages from computer and for that these much charges uncalled for. Hope Finance Minister Jailtely would look after.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #600257
    This is happening nowadays to every one and for me I have lost 300 rupees as the bank has reduced so much hidden charges like sms alerts, not transacted for particular pebariod etc etc but for me the new atm card has not worked and it is the bank's mistake that they have given me the card with mistake but the charges reduced is reduced.
    Nice to be in ISC and feel the difference.

  • #600280
    I think this is the reason many people are not opening multiple bank accounts. And dormant accounts are being charged too. So it's safe to say that it is always a good idea to close the accounts which are not in use. So that is going to be money burning for those who don't maintain the monthly average balance. I guess we have to find out if it's possible to close things online as that would be lot better option in that case.

  • #600282
    Yes, a dormant or inoperative account should be either reactivated submitting proper documents and transaction or closed. It is better to keep only very minimum number of accounts. However many times an alternate account with another bank comes to help.
    The best way is to monitor each account once a month and put in money and take out money at least once a month. Maintaining internet banking facility can help in this.

    Now that the interest rates for deposits have come down and we have to pay tax on that also, the net return is almost nothing. There is always clamour fo reducing loan interest mainly because car and other appliance manufacturers put pressure for enhancing their selling. If loan interest is reduced the deposit interest comes down.

  • #600287
    An SB account can be kept alive by making small withdrawals every few months. Cash flow out of the account keeps it active. Depositing money into the account, alone, is not considered. Online payments can be made to keep the account active.

    Closing an account can be quite a hassle – the staffs insist that you don't close the account, with the manager also pitching in. I think it is in their interest to show a number of accounts are held with the bank – it's about targets.

    Some time back I closed an account with a bank with which I had a long association. After much persuasion, they agreed to close the account and agreed to transfer the money to an account held jointly by my husband and I, in another bank, through NEFT. I had asked for a cheque, but they said it would take time, and this process was easier.

    I was made to sign a challan requesting the transfer of x amount, which came to a round figure, with a few rupees balance in the account, which they said were required to meet the NEFT charges. They refused to take either the chequebook or the Debit Card – saying that they weren't required to be returned.

    I had my doubts because banks always take these back. A few days later, I used the card at an ATM and it was still active – with the balance amount in the negative.

    We went to the bank, the BM was on leave. Her replacement checked the status and said the account was still active. Fortunately, for us, we had a copy of the letter we had addressed to the bank for the closure of account – duly signed and stamped (round stamp). They processed the request almost immediately, and this time took the chequebook and debit card and destroyed them in front of us.

    Had I not checked on the status, the fines would have kept on being added, since the balance was in negative.

    "A love affair with knowledge will never end in heartbreak" - Michael Garrett Marino

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