Banking: Prashant Joshi

I opened a savings account with a public sector bank about two years back. I haven’t used it for any transactions for almost six-eight months now. Recently, the bank debited Rs 160 from that account, saying it had been inoperative for six months. According to the bank’s website, there were no charges for an inoperative account for a year. Is the bank correct in debiting the charges? If not, what action can I take against it?
As per the Reserve Bank of India guidelines, a savings or current account would be treated as inoperative / dormant if there are no transactions in the account for over a period of two years. In view of this guideline, your bank should not classify your account as an inoperative account as only six months have passed since your last transaction. However, you would also need to refer to the terms and conditions of your savings account, in relation to minimum balance non-maintenance charges. Suggest that you contact the branch manager to resolve this issue. You can write to the banking ombudsman if you do not get satisfactory resolution from the bank within 30 days.

My daughter is going abroad for a month-long course. What is the best way of carrying money that can be accessed immediately? Banks say traveller's cheques aren’t issued any more? How safe are prepaid cards? Do they charge a currency fee?
Traveller's cheques have not been discontinued and are still available with banks. However prepaid foreign currency cards are a more convenient and secure option for carrying foreign currency while travelling overseas. Prepaid foreign currency cards are safer as they are normally insured against thefts / loss and can be blocked using online banking or by placing a call to the issuing bank's call centre. They are available in all major foreign currencies and can be used at merchant establishments directly or at automated teller machines (ATMs) to withdraw cash in the currency of the country of travel.

Banks charge a nominal fee for issuance of prepaid foreign currency card. This can be charged upfront in Indian rupees or deducted in foreign currency from the amount loaded on the card. The foreign currency to be loaded on the card can be purchased at the rate offered by the bank on the day of purchase. ATM transactions on the card attract a charge as per the schedule of charges mentioned by the concerned card issuer bank. There are usually no charges for point-of-sale merchant transactions.

The writer is MD & head, private & business clients (India), Deutsche Bank