penal charges on inoperative bank accounts

The RBI has clarified vide its circular dated 6th May, 2014 that banks are not permitted to levy penal charges for non maintenance of minimum balances in any inoperative account. 

Earlier such charges were allowed to be levied on normal savings bank accounts while no charges were to be levied on Basic Savings Bank accounts. On the normal savings bank accounts also the banks could levy penal charges only after informing the customers regarding the same at the time of opening bank accounts. 

But now the penal charges on all inoperative bank accounts has been eliminated. This is a measure towards better customer service by the banks. 

A copy of the RBI circular is to be found here i.e. http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8867&Mode=0