Bank interest from Irregular current account
My CC account is irregular as there is a delay in renewal of my account. The delay in renewal is due to demonetization. Our CC account was due for renewal in Nov.2016. We had submitted all documents. But due to demonetization, all bank staff were busy with coping up with the sudden situation. I want to know, can the Bank collect interest on amount balance in case of account being irregular due to delay in renewing the limits.
Thanks. more
Thanks. more
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Banks are entitled to charge the penal interest on outstanding balance. Once you have proof of submission of the documents before due date they cannot charge you penal interest. more
Mar 12
If the outstanding in your CC account was within the existing sanctioned limit, the Bank would not charge any penal interest only on the excuse of delay in renewal, that too, after submitting all the required papers/documents in time. In the event of otherwise, you may represent to the bank sighting the reasons, as suggested by Mr. Ravinder Goyal. more
Mar 09
If I am not wrong I think you had applied for enhancement of your CClimit. It is incumbent on the borrower to keep the outstandings(including periodical interest applied) in your account with in the existing limit. Enhancements of advance limit depends on the the satisfactory conduct & growth in the business as per assessment of the bank. It is neither a right nor a certainty that limits will surely be increased. So due to this uncertainty & as per the stamped agreements signed at the time of availing the borrower undertakes to keep the outstanding balance including interest applied within the limits sanctioned. Thus the Bank is justified in applying penal interest /charges if the outstanding balance including interest goes beyond the existing limit. However the borrower can represent for taking a lenient view stating the appropriate reasons. more
Mar 09
