Recently RBI modified it’s earlier circular about “no-frill” savings account to offer common minimum services to customers. So first let us understand what is meant by “no-frill account”. No-frill accounts are mainly aimed at providing banking service to all but with minimum basic facilities. To understand it in a better way, I will provide you the no-frill account features of HDFC Bank.
No-frill account HDFC-Free ATM Card, Free net banking, you can use NEFT for fund transfer, free phone banking, free quarterly statement, free 1 cash withdrawal at your branch in a month (additional withdrawal will cost you Rs.50), first cheque book free but additional cheque book at Rs.5 a leaf, minimum balance is zero, it is eligible to the person who dont have bank account and who have annual income of less than Rs.50,000.
But the above said features are not common to all banks, like for Axis bank eligibility conditions are different (Sum of all total credit to your account does not exceed Rs.1,00,000 in a financial year and when you are unable to furnish all the documents during normal account opening procedure.).
To make it more active and uniformity among banks RBI issued latest guidelines and introduced the accounts called “Basic Savings Bank Deposit Account”. Let us see it’s feature.
1) This account is considered as normal Banking service available to all.
2) Zero balance maintenance.
3) Services available are-Withdrawing money from Bank ATMs as well as Bank branches, receipt and credit or money through electronic transfer or deposit/collection drawn through Central Govt/Stage Govt and dept.
4) Facility of ATM Debit card is available.
5) Their is no limit for deposit of money in a month but withdrawal is limited to four including ATM withdrawal.
6) Above facilities are free. Also no penalty on inactive accounts.
7) Apart from the above said basic services, banks are free to charge for the any additional value added services but should be transparent.
8) KYC and Anti Money Laundering rules and regulations apply to this account too.
9) Suppose you have any other account with same branch then you need to close that account within 30 days of opening this account.
10) Existing no-frill accounts will be converted to Basic Savings Bank Deposit Account.