What is a no frills account Why is it being offered by banks?

What is a no frills account Why is it being offered by banks?

The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. “This account shall not have the requirement of any minimum balance…

Do no frills account have fees?

While no charges are levied for maintaining no-frills account or BSBDA in a bank, the regular accounts are subject to various fees and charges. The key restriction on a BSBDA is that the account holder cannot make more than four withdrawals in a month, though there is no such limit on number of deposits.

Does a no frills account often has no fees?

False. Explanation: in addition to the service charges applicable to the no frills account was substantially lower than that of the regular savings accounts as a result the zero balance requirement that most banks offered,the account became commonly known as ZERO BALANCE ACCOUNT.

What is the difference between zero balance account and general account?

For, bank customers are not required to maintain any minimum average balance with a zero balance saving account, unlike a normal bank account. While the regular savings bank account requires the customers to maintain a certain monthly average balance (MAB), there is no need to do so with a zero balance account.

Who is not eligible for a business correspondent?

Eligibility to become a Business Correspondent Section 25 companies that are stand alone entities or in which NBFCs, banks, telecom companies and other corporate entities or their holding companies did not have equity holdings in excess of 10 per cent. Post offices.

What will happen if my BDO account is zero balance?

Falling Below Minimum Balance Fee will be collected if account falls below the required minimum MADB for two consecutive months. Account Dormancy Fee will be collected if account is dormant and falls below the minimum MADB. A savings account is dormant if it has no client-initiated activity for two (2) years.

Who is eligible for business correspondent?

Eligibility Criteria for Business Correspondent Retired bank employees, retired government employees and ex-servicemen and retired teachers. Individual owners of kirana / medical /fair price shops. Individual Public Call Office (PCO) operators. Agents of Small Savings schemes of Government of India/Insurance Companies.

Who can act as a business correspondent?

4.56 In addition to the institutions presently allowed by RBI to function as BCs, individuals like locally settled retired Government servants like postmasters, school teachers, ex-servicemen and ex-bank staff whose relationship with the banking system, through a pension account, has already been established, may be …

Can I withdraw all my money from BDO?

1. For ATM Holders. All you have to do is to go to any BDO ATM branch and withdraw all your money and BDO will automatically close the savings account for you since there is no money left in your account and they see that it is inactive. You will not incur any penalties in doing so, since this is your own money.

What is the disadvantages of zero balance account?

There could be transaction limits and a limit on the number of withdrawals per month. If the total transaction amount or number of withdrawals exceeds this limit, the bank may charge an additional fee. 4. Some banks may insist upon the closure of a regular Savings Account before users can open a Zero Balance Account.

What are the disadvantages of zero balance account?