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Exceeding four debits can freeze your Jan-Dhan bank account
Posted on: 30/May/2018 2:38:43 PM
Reserve bank of India (RBI) has announced the limitation of debit transactions in basic savings bank accounts including Pradhan Mantri Jan-Dhan Yojana accounts. Recent press release from RBI implied the banks not to have the minimum balance criteria for maintaining the account. Now the latest news of freezing the accounts after the completion of four debit transactions has shocked the customers nationwide.
Banks are not allowed to charge money for debit transactions resulting in the new rule imposition of restricting only four debit transactions. Some banks like HDFC and CITI are converting these kind of accounts into regular accounts imposing penalty if minimum balance no maintained. Basic savings bank deposit account (BSBDA) are transferred automatically into regular account for charging extra processing fees for transaction exceeding the limit.
Providing four transactions per month included not only ATM withdrawals but also the debit in the way of NEFT, Real-time gross settlement (RTGS), Transfer, Internet Debit, Branch withdrawal and EMIs. After such transaction listed above exceeds the four times limit the banks will froze the particular account. For instance using the account for two times withdrawal and two debit card transactions can freeze the account. Account holders should wait for an entire month to commence another set of four transactions.
The freezing of accounts mentioned by the Reserve Bank of India RBI has created a negative buzz across the nation in terms of banks acting against the goodwill of the public welfare. Many banking and financial study forums had shown the customers hardships in these kind of careless impositions in bank transactions.
Official reports confirms that State Bank of India SBI and Axis Bank restrict its customers going beyond four transactions in a month. ICICI charged penalty for transactions exceeding four debits but refunded the amount after the order of RBI making debit transactions completely free. Online purchases and Debit card transactions are included in the four allowed transactions of the BSBDA.
Unlimited electronic transactions entirely free from penalty is the best option where fairness can uniformly disbursed. Many analysis explains the RBI’s new rule forcing the BSBDA holders to restrict their transactions.
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