RBI Announces 3 New Rules

New rules and regulations proposed by Reserve Bank of India keeping in mind the security and safety of the customers. On Wednesday , RBI announced 3 rules as under:

No guardian needed for minor account holders: RBI has allowed a minor above age of 10 years, to open a saving bank account and enjoy other banking facilities like cheque books, ATMs without any guardian's support. Earlier as stated by RBI on December 1976, minors can only open account with their mother as guardian. This means guardian’s permission was must to access the account. However according to newly proposed rules guardian support is not required. To reduce the credit risks, RBI has asked banks to fix a limit. This limit may be the amount of money to be transferred or deposited per transaction, age or may be the documents also.

No penalty on low balance: Earlier banks used to penalize the account holders for inoperative accounts with lower balance amount than the minimum required. Now RBI has asked banks not to enforce any penalty charges on low balance. Bank can only limit the services available to the customers. Also, when the balance gets restored, these services will also be restored.

Better floating rate loans: Floating rate loans are the risky loans in which the rate of interest changes according to the current market trends. Showing the concern to protect customers, RBI has changed the rules. Like fixed rate loans, the floating rate loans can also be paid off before maturity.Customers previously had to pay penalty sum to close these loans.