Deduction of smab charges without informing?

Question

Hi, I am having a salary bank account in civil lines branch from many years was just checking my bank statement and got the shock of my life. My account has been debited by SMAB charges 5 TIMES in 4 months. 30/05/15 smab chgs 393.00, 16/06/15 smab chgs 399.00, 17/08/15 smab chgs 399.00, 29/08/15 smab chgs 399.00, 29/09/15 smab chgs 399.00 . I tried calling the civil lines branch but there was no response. I don't have any mail informing about this MAB charges. I have no information from bank. No call, no mail and no msg. Now that I understand that bank has not informed me about change of balance system, hence any deduction from account for the same is totally wrong and if charges deducted are not credited back to my account then I will be left with no other option but to take this matter to higher authorities and Banking Ombudsman as this is CLEAR VIOLATION of Rule 8(1)(k) i.e. "levying of charges without adequate prior notice to the customer" of The Banking Ombudsman Scheme 2006.

Answer 1

Mr Girish,

At the outset, let me clarify that this site is designed by a group of Senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any query / complaint / grievance in respect of financial services.  This site does not belong to any Bank or a Regulator, which may please be noted.

Normally, Salary account are offered as zero balance as long as salary credits are coming in the account. If salary credit does not come in the account for three continuous months then Banks convert salary account to a normal savings account, under intimation to the account holder. Thereafter, you are supposed to maintain average quarterly/monthly balance to avoid application of charges.

In your mIl, you have not mentioned about the salary credits continuing or not. If you haven't received any intimation regarding status change and maintenance of AQB/AMB, you mY escalate the issue to the nodal officer - grievances whose coordinates (contact) would be available on the Bank's website. If you do not get satisfactory response within a reasonable period of time, you may approach Banking Ombudsman / Consumer Forum for resolution of the issue.

Regards

Deepak