RBI Stops Banks From Charging Interest Due To Negative Balance: Check This New Rule


Sheetal Bhalerao

Sheetal Bhalerao

May 14, 2024


In a recent update, now you do not have to pay a single penny in case of minus balance, Banks cannot recover money for this, as per the latest RBI guidelines.

RBI Stops Banks From Charging Interest Due To Negative Balance: Check This New Rule

Latest RBI Guidelines Regarding Minus Balance in Account

With the use of the internet, most of the work related to banking is done through phone only.

So nowadays, people can do all the banking related work in a jiffy through their UPI app or net banking. 

But, this cycle gets disrupted, whenever a big thing gets stuck. In such an incident, we simply have to visit the bank and get things done.

Besides this, People have more than one account these days so keeping the minimum balance is a little bit difficult so they go into minus. 

In this kind of situation, if you ask the bank to close this account, they ask you to repay the amount that has gone into minus. 

To deal with these types of situations, RBI’s latest rules & regulation comes handy. Let’s go through them in detail in the further article.

Bank Cannot Ask For Recovery

Yess, you read right. In case if you have not maintained the balance and your balance may become zero, but it cannot go into minus. 

If the balance shows in minus then banks cannot take it from you. 

Precisely, the bank doesn’t have the right to ask for this money as the balance has gone negative. Confused! Lets see what RBI has said in its guidelines.

RBI Guidelines Regarding Negative Balance in Accounts

As per the RBI guidelines, you do not have to pay a single penny in case of minus balance.

This simply means that you can close your bank account absolutely free of cost.

The banks cannot charge you for this as according to the RBI, your balance cannot go into minus.

What Action Can Be Taken?

In case you are going through such an incident where any bank puts your account in minus and asks you to repay the minus balance to close the account – you can complain about this to RBI. 

This is simply done by visiting bankingombudsman.rbi.org.in. here simply register your complaint. 

Besides this, you can also complain on the helpline number of RBI. 

Once this is done, you can expect action which can be taken against the bank. 

In addition to this, you will not have to pay any money.


Sheetal Bhalerao
Sheetal Bhalerao
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