No fine should be imposed if there is no minimum balance in Bank Account – RBI Order
Posted on: 02/Apr/2014 2:44:50 PM
Reserve bank of India Governor, Mr. Raghuram Rajan released the reconsidered monetary policy for the current financial year.
There is no change in the interest rate charged by RBI for the short term loans relapsed by RBI to the banks. It remains at 8%. There is no change is ‘CRR’ (Cash Reserve ratio) which remains at 4%.
The growth of economy for the year 2014-15 is expected to be 5.5%. There is possibility of GDP shortfall to 2%. RBI expects the retails sales inflation in the financial year 2014 is expected to be below 6%.
RBI has announced that the no fines should be levied on savings account holders when they do not keep minimum balance or without any transactions over a long period. If required, some of the services can be suspended. When minimum balance is restored, the suspension can be withdrawn. Account holder’s safety in operations is very important.
Industrial activities tend to harm the economy. Also, merger of banks should be carried out preventing competition and any threat to stability of operations. RBI is keen n extending the benefits of the latest technology to everyone.
The stock market trend is bullish under the hope that a stable government will be formed after the elections. However, it must be noted that there will be great slide in the stock market in case a stable government could not be formed after the elections.
