Union Bank of India is one of the leading public sector banks that over 21 crore people trust. As an account holder in Union Bank, it’s time for you to note the penalties and charges beforehand. It will help you save extra charges and be a loyal customer of the bank.
This article includes all the information about the charges as well as other measures one needs to know.
What are the minimum balance penalty charges in Union Bank of India?
The charges for not maintaining a minimum balance are different based on the type of account you have. It also depends on the shortfall amount. The amount here reflects the difference between the current balance and the minimum required balance.
- For savings accounts with a chequebook in Union Bank, the minimum balance penalty for a shortfall of 501 to 1000 rupees is 118 rupees. (100 rupees basic charge +18% GST)
- The minimum balance penalty for a shortfall of 251-500 rupees is 59 (50 rupees basic charge +18 % GST) for a savings account with a chequebook
- For a shortfall of up to 250 rupees in a Union Bank savings account with a chequebook, the minimum balance penalty is 29.5 rupees (25 rupees basic charge +18% GST)
- The minimum balance penalty for a shortfall of 251-500 rupees is 59 (50 rupees basic charge +18 % GST) for a savings account in Union Bank without a chequebook
- For a shortfall of up to 250 rupees in a savings account with a chequebook, the minimum balance penalty is 29.5 rupees (25 rupees basic charge +18% GST)
The above minimum balance penalty rates are the same for individual and non-individual Union Bank savings accounts.
| Shortfall in QAB
Union Bank of India |
Charges
(A/c with chq book) |
Charges
(A/c with chq book) |
|---|---|---|
| Rs 501 – 1000 | Rs 100 + GST | NA |
| Rs 251 – 500 | Rs 50 + GST | Rs 30 + GST |
| Up to Rs 250 | Rs 25 + GST | Rs 20 + GST |
Now, charges for not maintaining a minimum balance in CD in Union Bank (certificate of deposit) if different for each quarter. The shortfall amount is not a standard in this case. It only depends on the type of account.
- For CD accounts for companies in Union Bank, the minimum balance penalty is 590 rupees per quarter. (500 rupees basic charge +18% GST)
- For other CD accounts in Union Bank, the minimum balance penalty is 413 rupees per quarter. (350 rupees basic charge +18% GST). It’s applicable to both individuals and non-individuals.
Note that, in savings accounts for both senior citizens and pension holders, a minimum balance penalty does not apply.
Conclusion
It’s a mutual responsibility of both the bank and the account holder to discuss about minimum balance. For Union Bank, this charge is calculated quarterly (per 3 months). That’s why it’s called AQB or average quarterly balance. So, you need to maintain an average balance from the 16th of the last month of the last quarter to the 15th of the last month of the current quarter. Otherwise, a penalty charge will be deducted.
As advised by the Minister of State for Finance, Pankaj Chaudhary, all the public and private sector banks need to disclose these charges to customers beforehand. So, while opening a new account in Union Bank, make sure you get the information from the bank and maintain an average quarterly balance.