N.Y. Banking Law § 14-F Power of the Superintendent of Financial Services to Require the Provision of Basic Banking Services

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 777
• Year: 2023
• Citation: N.Y. Banking Law § 14-F

1. The legislature finds and declares that certain consumers residing in this state may be unable to afford, without undue financial hardship, the cost of maintaining a consumer transaction account at a banking institution located in this state. It is the policy of this state that, consistent with safe and sound banking practices, banking institutions make available lower cost banking services to consumers. It is further intended that no banking institution be required to offer lower cost banking services at a cost to account holders which is less than the actual cost to the banking institution to provide such services.

2. Except as otherwise provided in this section, every banking institution shall make available to consumers a consumer transaction account, to be known as a "basic banking account", with the following features to be prescribed by the superintendent of financial services by regulation:

(a) the maximum amount which a banking institution may require as an initial deposit, if any;

(b) the maximum amount a banking institution may require as a minimum balance, if any, to maintain such account;

(c) eight withdrawal transactions for account holders under sixty-five years of age, and twelve withdrawal transactions for account holders sixty-five years of age or older, including those conducted at electronic facilities, during any periodic cycle at no additional charge to the account holder; and

(d) the maximum amount a banking institution may charge per periodic cycle for the use of such account.

3. With respect to any transactions in excess of the number specified in accordance with paragraph (c) of subdivision two of this section, (a) a banking institution may impose a reasonable per-transaction charge, or (b) it may impose the fees and charges normally applied to other consumer transaction accounts available at that banking institution provided that any charge per periodic cycle imposed hereunder must be reduced by the charge imposed under paragraph (d) of subdivision two of this section; provided however, that at no time shall the fees and charges on the basic banking account exceed the amount that is normally applied to other consumer transaction accounts available at that banking institution.

4. A banking institution may require as a condition for opening or maintaining a basic banking account, (a) that the holder of a basic banking account be a resident of this state; and (b) the direct deposit to the banking institution of recurring payments such as, but not limited to, social security, wage, or pension payments where direct deposit is available to both the consumer and the banking institution.