As Per RTI Reply, Bank Of Baroda Earned Whopping 807 Crore As Penalty From Its Customers Due To Non-Maintenance Of Balance In Customers Bank Account
We filed an RTI to know about the charges collected by the Bank of Baroda due to non- balance maintenance for the year 2012-21 and we got some shocking results. Read the complete article to know everything.
What is a Non Balance or minimum balance account?
To keep an account open or get interested, a customer must have a certain amount of money in the account. This is called the “minimum balance.” If you have a margin account, the minimum deposit amount is the amount you must have before trading on margin. After you buy a stock on margin, the minimum balance is the amount you must have to keep your account safe.
These are the most important things to remember.
There must be a certain amount of money in a bank account to get certain things or keep the account open.
In margin accounts, the minimum balance is the amount of money you must deposit before starting trading and the amount of money you must keep in the account after you start trading.
Minimum balances can be enforced by charging fees or not paying interest, or by closing an account if the minimum balance isn’t met,
In some cases, you can avoid having to have a certain amount of money in your account by only using online services, setting up direct deposits and, for students, opening a student account.
When someone opens up an account with a bank, they may have to keep a certain amount of money in the account. This is the minimum balance for checking accounts, and it usually isn’t more than this. The reason for the minimum balance is different for each bank. Some banks may want you to have a certain balance to open an account. Others may want you to have a certain balance to get better treatment with extra services. People who work at banks have different rules about how much money they must keep in their accounts. If the bill doesn’t meet the minimum balance, it could be charged fees, not interested, or closed.
What is an RTI?
The Right to Information Act, also known as RTI, is a new law in India that aims to make government institutions more open. In 2005, after a lot of work by anti-corruption activists, the Act was passed.
When government organisations are put on the public record, it is called “revolutionary.” When a person knows about RTI, they can ask any government agency to give them information. The organisation has to provide the information, and it has to do so in 30 days. If it doesn’t, the officer in charge is fined.
Bank of Baroda is hungry only for money
Bank of Baroda charged penalties on everything no matter what the situation is and during the pandemic time they haven’t stopped charging. Bank of Baroda should have stopped because during pandemic there are many homes that are destroyed only because of hunger, starvation, unemployment expensive medical facilities and as well as some people might have taken loan from the Bank of Baroda and BOB have even charged for paying late EMI amount to the bank.
This is how Bank of Baroda doesn’t care about the situation, what’s happening in the country they don’t worry about anything. They only care for money, they only think about the strategies how they can make money on the basis of low minimum balance in the account or make a penalty charge on late submission of interest and loan to them.
As per the RTI that was filed, we have attached an image in which we can clearly see that how much money Bank of Baroda made by collecting amount on the name of ‘Due to Non- Balance’. During 2012-13 bank made around 93-94 crores. During the year 2013-14 BOB made around 78 crores. During 2014-15 bank made around 49-50 crores. During 2015-16 bank made around 63.5 crores. Next Year 2016-17 bank made around 75-76 crores. During 2017-18 bank collected around 85 crores. During 2018-19 bank collected somewhere around 84 crores. Now during pandemic time,2019-20 bank collected a huge amount of 120 crores and in the year 2020-21 bank collected a huge amount of 157 crores.
Conclusion:
The minimum deposit amount is the amount you must have before trading on margin. The minimum balance is the money you must keep in your account to keep it safe. Minimum balances can be enforced by charging fees or not paying interest, or by closing an account if they aren’t met. Bank of Baroda charged penalties on everything no matter what the situation is and during the pandemic time they haven’t stopped charging.After filing RTI and we got to know why RTI is useful. During 2012-13 bank made around 93-94 crores. In the year 2013-14 BOB made around 78 crores and in the year 2020-21 bank collected a huge amount.
