It
has been noted through receipt of increasing number of complaints
from general public and representations received from different
quarters that banks are demanding substantial amounts for
opening of bank accounts and periodically deducting exorbitant
sums from the depositors’ accounts on account of so-called
“Service Charges” for maintaining less than the prescribed
minimum balance in the accounts.
The phenomenon has been seriously undermining the promotion
of banking culture in the society.
2. With
a view to promote healthy banking, it has been decided to
substitute the existing Prudential Regulation No.XIII with
the following: -
i) All
terms and conditions of operation of an account shall be duly
made known to the opener of the account at the time of opening
of the account.
The terms and conditions must be elaborately documented
in the account opening form/application and must be signed
by the prospective depositor/ account holder to signify having
been read and understood.
ii) All
account opening forms shall be filled in by the account holder
in duplicate, one copy of which shall be returned to the depositor/
account holder duly verified by the authorized officials of
the branch under proper acknowledgement.
iii) Terms
and conditions of maintaining an investment account or other
deposits for fixed periods, by whatever name called, shall
be alterable only with the written consent of the depositor.
In case the depositor does not consent to the proposed alterations,
the bank shall have the right to close the account after giving
7-days notice to the depositor.
iv) Effective
immediately, non-remunerative deposit accounts and accounts
opened on profit & loss-sharing basis shall not be subject
to the levy of any service charges in any form what so ever.
v) All
sums maintained by the depositors with their banks on PLS
basis, even if such balances have at any point of time fallen
below the prescribed minimum, shall be remunerated as per
the rates declared
by the banks. The banks can realize the penalty for
violating prescribed minimum balance provided the depositor
is duly notified and this condition is disclosed at the time
of the opening of the account.
3
The above instructions shall come into force with immediate effect.
4
BPRD Circular No. 34 of 1995 in this regard has been withdrawn with immediate
effect.
5. Violation
of the above instructions shall be subject to fine equivalent
to not less than the sum deducted from the depositor’s account.
6.
Please acknowledge receipt.
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