Damodaran panel suggests low balance savings a/cs: Sources

For all those customers who have been complaining about the poor service offered by banks and their high charges, it's time to smile. CNBC-TV18's Vidhi Godiawala learns the RBI appointed Damodaran Committee on customer services strongly supports zero or very low balance for all savings accounts.

The thrust of the Damodaran Committee report clearly states that whole of the telecom spread in that sector has led to falling charges for all. But the spread in the banking sector has not really given any benefits to the poor; it has just benefitted the rich people there. Sources said that the committee has received maximum grievances on the high minimum balance charged on savings accounts by banks, which goes to as high as about Rs 10,000 in some of the private sector banks. Bankers however on the other sides say that they give many freebies, things like an international debit card. But that cannot be used by a majority of people and this only benefits the rich. All these customers as well, if that come on balance sheets below that minimum requirement, the banks start charging them a penalty. Sources are indicating that the Damodaran Committee report is very much in favor recommending either a zero balance or an extremely low balance on the savings account for bank customers. Sources added that the committee is looking at bank