No-frills account is a bank account that can be opened even with a zero balance. The main aim behind the introduction of no-frills account is to offer basic banking services.
'No Frills 'account is a basic banking account. Such account requires either nil minimum balance or very low minimum balance. Charges applicable to such accounts are low. Services available to such account is limited.
In what can be described as a watershed Annual Policy Statement, the RBI in 2005-06 called upon Indian banks to design a ‘no frills account’ – a no precondition, low ‘minimum balance maintenance’ account with simplified KYC (Know Your Customer) norms. To understand the ramifications and the sheer magnitude of possibilities, think of the image of a daily wage earner owning a deposit account in a bank. The idea is to have a level playing field in its absolute meaning.
Low income groups having no access to formal banking systems can well be brought under the umbrella of credit & savings – key factors which form the basis of the idea of financial inclusion. While there is no shortage of credit programs, the equally important savings aspect can rightly be dubbed as the ‘forgotten half of microfinance’. ‘No frills’ savings accounts appear capable, at least on paper, to cater to the small and also irregular income flows of the poor.
The no-frills savings bank account introduced by several commercial banks a few months ago had all the potential to revolutionise India's rural agricultural economy, as well as usher in the banking habit amongst a large number of the less privileged population. However, the product was lost among a myriad of financial offerings and most banks have shown little verve and vitality in marketing it.
No frills account:
Eligibility: Pensioners, agriculture laborers, employees of unorganized sector, member of SHG, self-employed person, students, rural folk etc.
Not eligible-Institutions, organization, NRI, bank staff
zero minimum balance requirement i.e. you can maintain this account without any minimum or average balance requirement.
Features & Benefits :
Internet Banking and Phone Banking facility each available
Keep track of your account with Free quarterly statements. You also have an option to receive E-Statement.
Access a wide network of branches and over a thousand ATMs across the country to meet all your banking needs.
Access your account through a Free ATM Card.
Some of the main banking institutes rendering this facility in india are :
Breakeven analysis is considered as an essential tool in every business prospect. The below article is about break even analysis.
Ethics involve an employee's moral judgement about right or wrong. Business ethics involve dealing with all the stakeholders in an ethical manner.
The effectiveness and efficiency of a organization helps in determining the productivity of an organization and how it achieves its goals. The following article discusses the effectiveness and efficiency of an organization in detail..