The Reserve Bank has asked the banks to exempt the savings account holders from penalties for non-maintenance of the minimum balance. In its first bi-monthly policy, the RBI has announced its proposal for comprehensive consumer protection, based on its experience and global best practices. It has proposed that the banks should stop taking advantage of customer difficulty or inattention and instead of levying penalties for non-maintenance of minimum balance, they should limit the services on such accounts to those available to basic savings accounts and restore the full range of services when the minimum balances is restored.
No-frill accounts or basic savings accounts carry no minimum balance requirement. However, they can be used only for deposit and withdrawal and there are no other services available such as cheque books.