Banks prescribe a minimum balance for saving bank accounts either through minimum Quarterly average Balance or Monthly Average Balance.

• Average Monthly Balance(AMB) is the average of the day end balance in your account from the first to last day of the month
  AMB = (Sum of Day End Balance for each day of month) / No. of Days in Month
• Average Quarterly Balance(AQB) is the average of the month end balance in your account from the first to last day of the months in the quarter.
  AQB = (Sum of Day End Balance for each day of quarter)/No. of Days in Quarter

Note :

• If the saving account hits zero, the banks should stop imposing fines according to the new guidelines given by Reserve Bank of India.
• Banks have different type of saving accounts with different criteria.So please get all the information before you open saving account in any bank.
• According to RBI, a dormant account should not be charged with the penalty for non-maintenance of Average Balance.

As per a directive from the Reserve Bank of India (RBI),banks have been asked to stop imposing charges for non-maintenance of minimum balance, once the account balance touches zero.

• Banks should not fine the dormant accounts.
• Dormant Account : An account becomes dormant if a customer does not initiate transactions such as withdrawal of cash at a branch or automated teller machine (ATM), payment by cheque, transfer of funds through Internet banking, phone banking or ATMs.
• Inoperative Account : Any bank account which is inoperative for more than 24 months.
• The central bank has also given the customers an option to approach the banking ombudsman in case banks continue to debit charges on accounts which have zero balance, creating a negative balance.Here you can find the RBI circular.

Here are the steps you need to take to redress your grievance.

Step 1: Approach your bank.The customer can visit the bank and meet the officials and submit  written complaint.Do not forget to take the acknowledgment from the concerned official.Banks have a dedicated toll-free customer care number, which you can use to lodge your grievance and get a complaint ID.

Customers can also register a complaint on the bank’s website.Once the complaint is lodged, the customer needs to wait for 30 days for the bank to offer a solution or give a suitable reply

Step 2:  Approach the Banking Ombudsman.

• If your grievance is not redressed at the branch, you may approach the higher authorities of the bank (Regional / Zonal Manager) whose contact details should be available at the branch.
• If you do not receive a reply within 30 days of lodging your complaint with the bank or you are not satisfied with the reply, you may approach the Banking Ombudsman under whose jurisdiction the branch falls.
• The contact details of the Banking Ombudsman should be available at the branch and also at RBI website

If you do not receive a reply within 30 days of lodging your complaint with the bank or you are not satisfied with the reply, you may approach the Banking Ombudsman under whose jurisdiction the branch falls or complain online.You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located. You can put it down on a plain paper, send an e-mail, or fill the complaint form on the RBI website. There are no charges for filing a complaint.

1Visit RBI Ombudsman and click on the complaint form.

2Conditions for the ombudsman not to consider your complaint:

• if he has not approached his bank for grievance redressal first, or if the subject is pending for disposal or
• has already been dealt with at any other forum, such as a court of law or consumer court
• the complaint will not be considered if more than one year has passed since the customer has heard from the bank, or 13 months since the date of representation to the bank.

If you are not happy with the settlement offered by the ombudsman, you can file an appeal before the appellate authority , deputy governor of the RBI, within 30 days.The Customer can approach consumer redressal forums, which take up bank-related complaints, or even the courts.

Resources:

• Axis Bank’s official document of fines levied if minimum balance is not maintained.
• Average Monthly Calculator of HDFC bank.
• Reserve Bank Of India
• Banking Ombudsman

Disclaimer : *This information is subject to periodic government policy / process change. Kindly contact the concerned department to cross check for recent updates, if any.