If you are stuck in such a situation, here is what to do.

Mr. Sameer Kumar, a resident of Janakpuri, recently visited a branch of ‘SecureFirst Bank’ to open a simple savings account. He was taken aback when the bank representative informed him that he needed to make an initial deposit of ₹50,000. The representative also specified that the account required a minimum balance of ₹10,000 to be maintained. Curiously, the bank official then added that Mr. Kumar could withdraw ₹40,000 the very next day after the account was opened. This contradictory information left Mr. Kumar confused about the bank’s policies, suspecting it might be a tactic to meet aggressive sales targets for premium accounts rather than a standard requirement for a basic account.

Advice in such cases

While banks are permitted to set requirements for Average Monthly Balance (AMB) for various types of savings accounts, the practice of demanding a very high initial deposit for a basic account, only to suggest its immediate withdrawal, is highly irregular. This is often a way for bank employees to push customers into opening high-value accounts to meet their internal targets. The Reserve Bank of India (RBI) has clear guidelines promoting financial inclusion, which includes the provision of Basic Savings Bank Deposit (BSBD) accounts. These accounts are designed to have zero or very low minimum balance requirements, making banking accessible to everyone. If you face such a demand, you should ask the bank official to provide the official schedule of charges and the specific terms and conditions for the account type they are offering. Always insist on opening an account that suits your needs, not the bank’s targets.

Applicable Sections of Law

This situation does not fall under criminal law, so the provisions of the Bharatiya Nyaya Sanhita (BNS) or Bharatiya Nagarik Suraksha Sanhita (BNSS) would not apply unless there is an element of fraud. The issue is governed by banking regulations. The primary legal frameworks are:

• The Banking Regulation Act, 1949: This Act grants the Reserve Bank of India (RBI) the authority to issue directives and regulate the functioning of banks in India to protect the interests of depositors.
• RBI Master Circulars on Customer Service in Banks: The RBI periodically issues circulars that lay down rules for banks regarding account opening procedures, charges, and customer service standards. Forcing a customer into a specific product or misselling is against these guidelines.
• The Reserve Bank – Integrated Ombudsman Scheme, 2021: This is the primary grievance redressal mechanism for customers. If a bank does not resolve your complaint satisfactorily, you can escalate the matter to the RBI Ombudsman, who can investigate and issue a binding order.

If you are the complainant

If a bank is making unreasonable demands, you should take the following steps to file a formal complaint:

• First, submit a written complaint to the Branch Manager of the bank where the incident occurred. Ensure you get an acknowledgment of your complaint.
• If you do not receive a satisfactory response or any response at all within 30 days, escalate the matter to the bank’s Nodal Officer or the head of their customer service grievance cell. The details are usually available on the bank’s website.
• If the issue remains unresolved, you can file a complaint with the RBI Banking Ombudsman. This can be done online through the RBI’s Complaint Management System (CMS) portal.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A Good lawyer can get the issues resolve in 7-10 days.

If you are the victim

If you feel you are being unfairly treated or pressured by a bank, remember your rights as a customer:

• You have the right to open a Basic Savings Bank Deposit (BSBD) Account at any bank. This account does not have a minimum balance requirement.
• You have the right to receive clear and transparent information. Ask for the bank’s official schedule of charges and terms for different accounts in writing.
• Do not be coerced into opening an account that does not fit your financial needs. You can walk away and try another bank or another branch of the same bank.
• Keep a record of your interactions, including the name of the official you spoke with, the date, and the time.

How the police behave in such cases

The police generally do not have a role in such matters as they are considered civil or regulatory disputes, not criminal offenses. If you approach a police station with a complaint about a bank’s minimum balance policy, they will likely direct you to pursue the matter through the bank’s internal grievance redressal mechanism or file a complaint with the RBI Banking Ombudsman. Police intervention would only be warranted if there was a clear case of criminal cheating or fraud, such as the bank taking your money without opening an account or siphoning funds, which is different from setting account opening terms.

FAQs people normally have

Q: Can a bank force me to open a high-value account?

A: No. While banks can market their premium products, forcing a customer to open a specific type of account, especially by providing misleading information, is considered misselling and is against RBI regulations.

Q: What is a Basic Savings Bank Deposit (BSBD) Account?

A: A BSBD account is a zero-balance savings account mandated by the RBI to ensure everyone has access to basic banking facilities. It comes with an ATM-cum-debit card and allows a certain number of free transactions per month.

Q: Is it illegal for bank employees to have sales targets?

A: It is not illegal for banks to set sales targets for their employees. However, the methods used to achieve these targets must be ethical and within the guidelines set by the RBI. Pressurizing or misleading customers is not permissible.

What evidence is required?

To build a strong complaint, you should gather the following:

• A detailed written account of the incident, including the date, time, branch location, and the name of the bank official you interacted with.
• A copy of any brochure, pamphlet, or document the bank provided regarding the account.
• Copies of the written complaints you submitted to the Branch Manager and the bank’s nodal officer, along with their acknowledgments.
• Any email correspondence with the bank regarding the issue.

How long will the investigation take?

According to RBI guidelines, a bank should resolve a customer’s complaint within 30 days of receiving it. If the complaint is escalated to the RBI Ombudsman, the time taken for resolution can vary. The Ombudsman’s office will first try to mediate a settlement between you and the bank. If that fails, they will conduct an investigation and pass an award, which can take a few weeks to a couple of months, depending on the case’s complexity.

Advocate Sudhir Rao, Supreme Court of India