Can banker close account for non operating
Khaleel Ahmed Mohammed
(Querist) 28 October 2009
This query is : Resolved
Dear Experts,
Can banker close account for non operating?
R.R. KRISHNAA
(Expert) 28 October 2009
There is no deficiency of service in closing down the account unilaterally by the bank if the account is not being operated as per the Rules and when the complainant has been intimated of the intention of the bank to close down the account.
V.P.George v. Chairman, The Federal Bank Ltd., & Anr. 1996 (2) CPR 393 (SCDRC-Kerala)
But Closing of account without the instructions of the account holder would amount to deficiency in service.
Sudharsan.m
(Expert) 28 October 2009
Non operative for more than 5 years can be closed even without the consult of the account holder. the puposes may be for audit and accounts.
Raj Kumar Makkad
(Expert) 28 October 2009
Recently RBI has authorized all banks to temporarily suspend the saving bank accounts if no transaction takes lace within a period of a year and close the same if no transaction therein takes place within 5 years and there is no need to either intimate or seek request of the account holder for doing this. So it is legal to close the account in the circumstances mentioned herein.
Theja
(Expert) 28 October 2009
Oh thats a great information sir. But I have a doubt, isnt this affecting the interest of the accountholder as closing the account without proper notice is violation of principles of natural justice.
Anish goyal
(Expert) 28 October 2009
I think the step by RBI is in right direction. If an account is not operated 4 many years that should be closed. But what about the money in that account? I think that should form the part of any welfare scheme. There must be some policy by central government
Sachin Bhatia
(Expert) 29 October 2009
The procedure for closing the bank account may varies in diffrent banks. Some banks turn account to unclaimed account after 10 years if unoperative but it is mandatory to send a notice before this.
MANISH
(Expert) 29 October 2009
Dear friend,
When an account is inoperative for a period of one year, then that account becomes "Dormant Account", the account holder cannot operate the same normally, and the same account goes into the suspense account of the bank. However, by depositing some money in such account the account becomes effective and operative, and one may continue with this account.
If there is a balance of less than the minimum account as has been required by the bank to be the minimum balance, then the bank is authorised to close such account after deducting necessary charges etc., being the charges for maintaining the account, within a quarter of the year. This condition is even stipulated in the forms of account opening.
If it is not so, then you may check the guidelines of RBI in this regard.
