What is to be done when the bank changes the account type?
I retired from a private bank last year. When I was retiring, I was told that I could continue the zero balance account I had with them. But now, without giving any prior notice, the bank changed the account to a normal savings bank account and charged around Rs 1,500 for not maintaining the minimum balance of Rs 5,000. I figured this while I was checking my bank statement. What course of action can I take?
Latha Murugappa, Chennai
Banks are required to notify the customer of any changes to the service standards. Banks merely paste notices at their branches, which is grossly inadequate. In case of any concessions, as a rule, it always hinges on the condition under which the minimum balance requirement was waived. In your case, it must have been done because you were a bank employee and your retirement could have revoked that waiver. The change in service conditions could have prompted the bank to seek a minimum balance from you. You should negotiate with the bank or agree to close the account and seek waiver of the penalty imposed, and move on to a bank that meets your needs.