Banks service charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 dear members,
what are the rights/ powers with banks for collection of service charges on closure of account
and what if service charges exceed account balance
please reply with link if any
thank you in advance.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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03 June 2013 There is no specific norm for charging service charges for closing of bank account. Each bank have fixed nominal charges which varies from Rs. 250/- to 500/- depending on the nature of the account you are maintaining. If at the time closer of the account your account exceeds the balance in your account, you have to clear your account and only after your dues become zero the bank will issue no dues certificate. The other option with you is do not close the account keep Rs. 50/- as the balance and forget about the account. After lapse of time this account will automatically be closed but if it is loan account and you have given collateral then it is not possible and you have to clear the dues to take your papers for collateral.