Financial Inclusion is the delivery of banking services at affordable costs to vast sections of disadvantaged and low income groups.
\u201cThe process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players.\u201d
The concept of \u2018NO-FRILLS\u2019 ACCOUNT, was first mooted by RBI in its Mid-term Review of Annual Policy Statement for the year 2005-06.
minimum balances as well as charges that would make such accounts accessible to vast sections of population. The nature and number of transactions in such accounts could be restricted, but made known to the customer in advance in a transparent manner. All banks are advised to give wide publicity to the
facility of such a 'no-frills' account including on their web sites indicating the facilities and charges in a transparent manner.
However, while opening such accounts the customer should be made aware that if at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rs.50,000/- or total credits in the accounts exceed Rs.1.00 lakh in a year, no
further transaction will be permitted in the account until full KYC procedure in regard to verification of identity and address of the customer through the documents as specified are complied with.
3) A decent Average Balance in the \u2018NO-FRILLS\u2019 ACCOUNT is due to balances in 20% of the \u2018NO-FRILLS\u2019 ACCOUNT. YES, the 80/20 funda, works here also.
May be it is time, to offer Incentives to Banks to encourage them
to open \u2018NO-FRILLS\u2019 ACCOUNT.
What could be the incentives and who has to offer them?
Well, the incentives have to be offered by Reserve Bank of India.
What could be the incentives?
Now bringing you back...
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