HDFC Salary Account Closure because of unauthorised dues !

POSTED BY Amit Gupta ON January 18, 2014 10:08 pm COMMENTS (20)

Dear Jagoinvestor Team,

First of all I would like to appreciate your efforts to make people aware about their financial matters. I learnt a lot of things regarding financial matters by reading this blog. I have a query regarding HDFC salary account closure and I would appreciate if you can help me.

I have a salary account in HDFC bank opened 3 and a half years ago by my previous employer. I was not using this account for last 2 years as I was on onsite for long term assignment. I had already transferred remaining balance to my other account before leaving. As per the current bank records, the account balance is 0 and there are no uncleared funds/dues against my account. I have recently joined other organization and they have relationship with HDFC bank. I was thinking to continue with the same account. Today, I visited their branch to update my contact details. To my surprise the bank representative told me that your account has dues around Rs 4700 and you have to pay it before you continue with this account. I didn’t understand why the bank has levied these charges because my account statement is still showing 0 balance and no dues. I had already given email approval to close this account before leaving for onsite but the bank didn’t close this account as they wanted my physical presence. I know that if there is no salary credit for 3 months then it is converted to regular savings account. But since I didn’t get the time to close it so I thought that it ll become dormant after an year or 2 but it is still active.

I didn’t get any notification on my registered email id or mobile number that such charges are being levied on my account. It is unethical and the bank’s fault to levy the charges without informing the customer. Can you please tell me how can I  continue with the same account or close this account without paying these charges?

Regards

Amit Gupta

20 replies on this article “HDFC Salary Account Closure because of unauthorised dues !”

  1. mahesh kulkarni says:

    I have open saving A/C in HDFC bank, then I submit form for covert into salary A/C .Then from bank not any SMS , mail about change. Only when I call bank they answer we have done it.

    1. Hi mahesh kulkarni

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  2. Mayur Kadam says:

    hi Sir
    I had salary account in Hdfc bank that bank converted into saving A/c. I get SMS about withdrawal of benifits of salary account but bank not inform details of charges as per new RBI notification w.e.f.1 April 2015. After that I get SMS in august 2016 that AMB has been charged for RS.690 till january 2017 each month i geting massage.i go in branch to closed account they said me you have AMB charges of Rs.8000
    After left job in Feb 2015 I live in village.I am unemployed right now.I want to close my account
    Please reply me as early as possible.

    Regards
    Mayur Kadam

    1. Whats the problem here ? go to the branch and close it by filling up the form.

      1. sunny pal says:

        the bank staf told me it is charges for closing a/c Rs500 …..why i m paid for closing my A/C……my home branch its vashi and i m visit andheri branch.its is possible to close non- branch

        1. If its very new account, then there are closing charges, else not !

      2. Mahendra says:

        But sir I am not able to pay due charges

    2. Harsha R says:

      pls close account

  3. ashalanshu says:

    dear Rahul, the OBC was done in 2012 and others were done in 2006-2007.

    Thanks

    Ashal

  4. ashalanshu says:

    Dear Rahul, I have closed my accounts in OBC, ICICI and Axis and in all the 3 banks, physical presence was demanded. Interestingly for Axis and ICICI, I closed my account of some other branch from a different branch.

    Thanks

    Ashal

    1. rahul123 says:

      Hi Ashal,

      But are you sure, this is the only way to close bank account? Which year you closed these accounts?

      Thanks,
      Rahul

      1. Amit Gupta says:

        Dear Rahul,

        In case of citibank, your physical presence is not required. You don’t even have to visit the branch. You just have to forward a written application to their chennai based head office. They will process your request within 7 days. I guess it is due to limited number of citibank branches in India. They don’t process email applications. In HDFC also, physical presence is not required but here you have to send the account closure form to your home branch. In SBI, your physical presence is required in your home branch. I don’t know about the other banks.

        Regards
        Amit Gupta

  5. rahul123 says:

    Hi Ashal,

    Why do you think that account closure in bank requires physical presence? is it limited to HDFC bank or this practice is observed by other banks as well?

    Hi Amit,

    1. Similar thing happened with me (Citibank), they have not informed me about the charges which they levied on my account. I sent an email to them and asked to revert the penalty amount. First they refused , i sent an email again stating the same reasons (the one which you mentioned here) and told them that this is against the consumer and if required i will go to consumer court. surprisingly the charges reverted.

    2. Regarding the closure of account, i send an letter (courier) to the bank stating the reason for closure (you need to call the customer care to know the exact procedure for your bank). My account got closed in 7 working days. Physical presence was not required.

    3. Also the penalty amount is not very huge, so your CIBIL score will not have that huge impact…regular payment of other loan/CC amount will correct the score after 6-12 months.

    Make sure that you have all the communication in written format (email will do) with the bank, if you pursue this diligently, i am sure result will be in your favor.

    Thanks,
    Rahul

    1. Amit Gupta says:

      Hi Rahul,

      Thanks for your suggestion. I don’t have any outstanding loan against me and I always pay all my credit card debts on time. There is never a single instance of late payment. I ll use the same trick if I didn’t get satisfactory reply. I am also using HDFC credit card for last 3 years and I have a good credit history. I hope they ll waive the entire amount. In most private sector banks, we can close the accounts by visiting any branch. You just have to submit the closure form and other required details/proofs as requested by bank. The branch ll forward your application to the your home branch and they ll complete the closure process. But in case of SBI, you have to visit your home branch. Based on my experience, they don’t process most of the requests like contact details update, account closure, etc. outside your home branch because it involves additional costs like forwarding your application to base branch.

      Regards
      Amit Gupta

    2. Amit Gupta says:

      Hi All,

      Thanks everyone for your help. I got a call from HDFC bank yesterday and as per my discussion with branch manager, they agreed to give me full waiver if I close my account. But if I want to continue that account then no waiver will be provided. So I decided to close it and open a new salary account in HDFC as my employer have relationship with only HDFC bank. I have got the same reply in email. Lastly, I want to thank everyone on jagoinvestor forum for helping others in resolving their problems.

      Regards
      Amit Gupta

      1. rahul123 says:

        Good to know that your problem resolved.

        Thanks,
        Rahul

  6. ashalanshu says:

    Dear Amit, now in your case, you can not close the account with out settling the dues. More importantly, not paying these dues may be reported to CIBIL and it ‘ll impact your credit score there. Are you ready for it. Please talk to your HDFC Branch manager to create a way that you penalty is either waived off in full or partially.

    Thanks

    Ashal

  7. Amit Gupta says:

    Hi Ashal,

    Thanks for your reply. I know that the account closure needs to be done in physical presence. But my onsite processing happened so quickly that I didn’t get enough time to visit the bank and close the account. I didn’t want to continue this account if the bank are levying unjustified charges. The private sector banks are like robbers. They ask you to maintain very high AMB(Average monthly balance) in regular savings account and levy unjust charges on you for any kind of services offered. In SBI, you are required to maintain only Rs 1000 in your savings account. If the bank has charged me below Rs 500 then I could even think about it repaying them for non maintenance. But around Rs 5000 can’t be justified. Even I couldn’t get such huge interest amount if I maintain the AMB. They didn’t even care to notify me. I still receive the monthly email statements and the balance still shows zero. So its a part of negligence from the bank also. As per the RBI guidelines, a bank account should be changed to dormant if it is not active for a long time. My account was non operative for more than 2 years but still it is active. They wanted to levy these unjust charges on me and settle it whenever I plan to resume their services. I just wanted to know that if I close this account will this issue be resolved without paying any kind of charges. Should I approach the banking ombudsman? Please advise.

    Regards
    Amit Gupta

  8. ashalanshu says:

    Dear Amit, you like it or not but account closure is to be done only on physical presence. So the salary account in question was converted to regular one, after 3 months and there after, due to zero balance, penalty were levied for not maintaining proper balance. In my personal opinion, as you were using this account previously and want to use the same again, please ask your branch manager to negotiate for charges so that there may be a discount for you from current 4700 Rs.

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.