NO FRILLS ACCOUNT

No frill account is a type of bank account, with low / Zero balance requirement with extra-features removed.

In simple words it: If a company makes its service/product cheaper by removing the extra features, that is no frill.
eg. Dish TV package without 100 sports channels.

RBI came up with this No-frill concept, because poor people cannot open regular bank accounting having requirements like Rs.5000/- minimum balance etc.

So there are no frill accounts for them. So that poor people can open bank accounts and take loans, that’ll save them from the 36% interest rate charged by the evil money lenders.

1. - Account can be opened with a minimum initial deposits of Rs.5/- and maintained at the minimum balance of Rs 5, no penalty charges will be deducted in case the minimum balance reaches zero.
2. - The Account holders will not be eligible for Cheque Book and ATM card facilities
3. - Maximum numbers of withdrawals are restricted to 30 every 6 months.
4. - Duplicate passbook may be issued to the account holder with a charge of Rs.10/-

As you can see above, it doesn’t have the extra-features like Cheque book and ATM etc. So it is no-frill (because extra-features removed).

Advantages

·  Rural women can put their hard earned money in it, less chances of theft or husband spending it on Desi liquor.

·  Can get easy loans, saved from the clutches of moneylenders.

·  Some banks even offer free of charge DD (demand drafts) like 2 per month.

·  No frill account holder can convert his/her account to regular saving account later.

now no frill accounts have been replaced by BASIC SAVING BANK ACCOUNT CLICK  HERE


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