No Frill Account

'No Frills 'account is a basic banking account. Such account requires either nil minimum balance or very low minimum

balance. Charges applicable to such accounts are low.

The RBI in 2005-06 called upon Indian banks to design a ‘no frills

account’ – a no precondition, low ‘minimum balance maintenance’ account with simplified KYC (Know Your Customer) norms.

But all the existing ‘No-frills’ accounts opened were converted

into BSBDA in compliance with the guidelines issued by RBI in

2012.

BSBDA

I n 2012, RBI introduced BSBDA. Some important points are:

This account shall not have the requirement of any minimum

balance.

The services available in the account will include: deposit and withdrawal of cash at bank branch as well as ATMs; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments;

While there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals.

 Facility of ATM card or ATM-cum-Debit Card.

Business Correspondent

 Business correspondents are bank representatives. They personally go to the area allotted to them and carry out banking. They help villagers to open bank accounts, in banking transactions etc.

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Business Correspondents get commission from bank for every new account opened, every transaction made via them, every loan-application processed etc.