Banks advised to open No-Frill accounts for students for availing various Government Scholarships

August 26, 2010: With a view to achieving the objective of greater financial inclusion, all banks are advised by RBI in November, 2005 to make available a basic banking 'no-frills' account either with 'nil' or very low minimum balances as well as charges that would make such accounts accessible to vast sections of population.

The nature and number of transactions in such accounts could be restricted, but made known to the customer in advance in a transparent manner. All banks were advised to give wide publicity to the facility of such a 'no-frills' account including on their web sites indicating the facilities and charges in a transparent manner.



In view of feedbacks received, Reserve Bank of India has advised banks to ensure opening of no-frills accounts or other accounts for students from minority communities or other disadvantaged groups, when they approach banks, for availing various scholarships or other benefits offered by the Government. However, while opening such accounts, KYC norms as appropriate may be followed for the purpose.



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