New Delhi: RBI has taken strong exception to banks charging fees for closing the accounts of customers. Y V Reddy Governor RBI, told that a circular to stop such practice is on its way.

"Closing of account does not require a big effort...You can just close it, what's the problem? I can understand to say that for opening an account there is an effort but for closing an account how can they charge? It has been decided we would issue a circular that no charges should be levied on closure of account even if the existing contract provides for a charge on closing the account...They stand withdrawn" he said.

Reddy stressed the need of a proper relationship between the bank and its customers. Such petty things look like a crime when it comes to banking relationships and they should be done away with as soon as possible so that trust builds up.

RBI, off late has taken a lot of steps to weed out the problems in banking system and ensure a cleaner banking system. Be it the high handedness of recovery agents , asking the banks to close FD's with a lock-in tag , following transparent procedures in revising interest rates, the issue of banks charging different PLRs or the latest, asking them to shun the practice of charging fees for closing the bank accounts, RBI looks eager to make the banking system more accountable and responsive.