In order to bring the low income group of people, who have been traditionally staying out of the banking sector, into the banking net the Reserve Bank of India have desired that banks open No – Frills accounts.
Accordingly, it has been decided by our Bank to introduce the facility of “No Frills Savings Bank Accounts” with immediate effect. The salient features of the scheme are as under: –
- Type of eligible branches/ centres : All Branches
- Eligibility : Only Individuals in their own name or in joint names including minors.
- Minimum amount for opening of A/c : Nil
- Maximum permitted balance in : Rs.50,000.00
- Minimum Balance : 0 (Zero)
(As the software in our Bank is capable of maintaining an account with zero balance, the accounts can continue with zero balance, after initial opening with Rs.5/-).
- Collection of cheques will be allowed.
- Passbook may be issued as usual.
- Introduction from another account holder who has been subjected to full KYC procedure.
- The introducer’s account with the bank should be at least six months old and should show satisfactory transactions.
- Photograph of the customer (who proposes to open the account) and also his address need to be certified by the introducer, OR: obtention of any other evidence as to the identity and address of the customer to the satisfaction of the Bank.
Number of withdrawals in a month will be restricted to five. Service Charge of Rs.5/- per withdrawal will be levied from 6th transaction onwards.
- Immediate credit of outstation cheques will not be allowed.
- No Cheque Book is to be issued under this scheme.
- If there is no transaction for six months Rs.20/- will be charged. If the balance is below Rs.20/- the available balance will be charged ensuring that no overdraft is created and the account will continue with zero balance and the balance amount of charges will be recovered as and when credits are received.
CONVERSION OF ACCOUNT INTO REGULAR SAVING BANK ACCOUNT
The account will be allowed to be converted into regular Savings Bank Account with benefits like cheque book, unlimited transaction etc., subject to fulfillment of minimum balance and KYC requirement.
An undertaking as per Annexure be obtained from the customer