Jan.19: CERS MEDIATES
- Posted by CERC India
- Posted in JANUARY
Dena Bank refunds money charged for dormant account
 Technical glitch?
Nitin Shah had a savings account with Dena Bank for several years but stopped using it. However, a minimum balance of Rs. 1,140 was maintained. The bank started debiting dormant account charges. Once the balance was below the minimum, it also started debiting charges for non-maintenance of minimum balance resulting in a negative balance. When Nitin updated his passbook, he was shocked to see the debits and wrote to the bank.
As the bank did not respond, he approached Consumer Education and Research Society (CERS), Ahmedabad for help. CERS found that as per the bank’s policies, it could not charge dormant account charges if minimum balance was maintained. CERS wrote to Dena Bank and also to the Reserve Bank of India (RBI). After constant follow-up, the bank finally agreed it had made a mistake blaming it on a technical problem. The charges were reversed and Nitin got a refund of Rs.1,140 along with the reversal of the negative balance of Rs. 4,150.
Justice, at last
Remember
- As per Reserve Bank of India Guidelines (2008): “A savings as well as current account should be treated as inoperative/dormant if there are no transactions in the account for over a period of two years.†Importantly, the apex bank states: “Banks should not levy penal charges for non-maintenance of minimum balance in any inoperative account.â€
 
