Opening of No-Frills accounts by students for availing various Government Scholarships
Reserve Bank of India, RPCD, vide Notification No RBI/2010-11/182/RPCD.CO.FID. BC.No. 2433 /12.01.012/2010-11 dt.August 26, 2010, addressed to The Chairman & Managing Director/Chief Executive Officer of All Scheduled Commercial Banks, advised Banks to be sensitive to the needs of students availing scholarships and open ‘No Frills Bank Accounts’.
The notification can be accessed @
Every business service, to achieve a healthy business mix, aims to connect to all sections of the society.
No-frills or no frills is a term used to describe any service or product for which the non-essential features have been removed to keep the price low.
Depending on the facilities attached to each product, the service charges also vary.
‘No Frills Accounts’, in Banking Industry are aimed to attract the unbanked population. Once, the customer’s experiences the benefits of Banking, he/she will be ready to move to the next level.
‘No Frills Account’, was born out of regulatory push by Reserve Bank of India.
The genesis of No Frills Account, in India, can be traced to RBI circular dt11/11/2005, issued by RBI, DBOD.
The circular can be accessed @
The main features of a No Frills Account are
01) Simplified KYC norms
02) Low or Nil Balance
The main challenge for Banks, is to ensure that once the transactions reach the threshold level, the CBS should trigger a warning to the Bank, to enable the same to be converted into normal SB account, with enhanced KYC norms.
Links to few Bank’s ‘No Frills Account’s, are