Business Economy

Banks can offer cheque books for no-frills accounts

The Reserve Bank of India (RBI) has allowed banks to offer cheque book facility and other services to the no-frills account holders, but said they could not ask such account holders to maintain any minimum balance for such services.

The basic savings bank deposit account or no-frills account was designed as a savings account which will offer certain minimum facilities, free of charge, to the holders of such accounts.

“Banks are free to provide additional value-added services, including issue of cheque book, beyond the above minimum facilities, which may/may not be priced (in non-discriminatory manner) subject to disclosure. The availment of such additional services shall be at the option of the customers,” the RBI said in a notification.

As per the norms of no-frills account, account holders are not required to maintain minimum balance and can get certain minimum facilities for free. These facilities include, four withdrawals from ATMs in a month, deposit of cash at bank branch and ATM card or ATM-cum-debit card.

Source: thehindu.com

Leave a Reply

Your email address will not be published. Required fields are marked *