BANKING AFFAIRS

Detailed explanation-1: -Firms selling white goods are not likely to have low amounts in the account due to their monetary transactions that happen on a regular basis.

Detailed explanation-2: -Ans: No, the no-frills account or basic savings bank deposit account is a normal banking service and available to all citizens across the country. Only NRIs, organisations and institutions do not qualify for these accounts.

Detailed explanation-3: -No-frills bank accounts require zero or very low minimum balance and other banking facilities such as withdrawals and ATM and Debit card facilities at zero charges to enable universal access to banking facilities. No-frills bank accounts are now known as Basic Saving Bank Deposit Accounts.

Detailed explanation-4: -The ‘No Frills’ account aimed to offer the most basic banking service to those from low-income backgrounds. The concept was formulated as means of providing individuals from low-income backgrounds the opportunity to benefit from the credit and savings programs offered by most financial institutions.

Detailed explanation-5: -58/03.05. 33(F)/2005-06 dated December 27, 2005 on No Frill accounts, banks have now been advised to offer a ‘Basic Savings Bank Deposit Account’ to all their customers vide RPCD.