Q. Recently, the Reserve Bank of India (RBI) has revised guidelines for classifying accounts and deposits as inoperative accounts. With reference to these guidelines, consider the following statements:
1.Banks cannot impose penalties for not maintaining minimum balances in accounts classified as inoperative.
2.Interest on savings accounts should be regularly credited, regardless of the account’s operational status.
3.Bank-induced transactions are necessary for an account to be operative.
How many of the statements given above are correct?
Answer: B
Notes:
Explanation –
Statements 1 and 2 are correct. According to the revised guidelines, banks cannot impose penalties for non-maintenance of minimum balances in accounts classified as inoperative. Interest on savings accounts should be credited regularly, regardless of the account’s operational status, according to the guidelines.
Statement 3 is incorrect. To classify an account as operative, only transactions initiated by the customer will be taken into account, excluding those initiated by the bank.
Source: Forum IAS
