Mail News Service
Imphal, May 18 : With a view to achieve the objective of greater financial inclusion, the Reserve Bank of India (RBI) issued instructions to all Scheduled Commercial Banks 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. As per RBI, the number of no-frills accounts outstanding with Public Sector Banks (excluding Regional Rural Banks) and Private Sector Banks at end of March 2012, is 1032.06 lakhs.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.
Reserve Bank of India (RBI) has informed that banks have been advised to ensure that their branches invariably accept cash over the counters from all their customers who desire to deposit cash at the counters. Banks have also been advised to refrain from incorporating clauses in the terms and conditions which restricts deposit of cash over the counters. However, Indian Banks Association (IBA) had advised that banks may be levying charges when very large amounts are deposited across the counter as counting large quantities of cash and handling them have cost elements for banks.
With effect from September, 1999 banks have been given freedom to fix service charges for various types of services rendered by them. While fixing service charges, banks should ensure that the charges are reasonable and not out of line with the average cost of providing these services.
The Government reviews the performance of Regional Rural Banks (RRBs) on an ongoing basis. The Committee constituted by Government under the chairmanship of Dr. K.C. Chakrabarty on Capital to Risk Weighted Assets Ratio (CRAR) has reviewed the performance and the financial position of Regional Rural Banks (RRBs). After assessment of financial position of RRBs the Committee in April, 2010 inter-alia recommended recapitalization of 40 RRBs to improve their CRAR.
In view of the recommendations of Dr. Chakrabarty Committee, an amount of Rs. 66.49 crore was released to 5 RRBs during 2010-11 and Rs.402.43 crore has been release to 19 RRBs during 2011-12 as the release of Central Government share is subject to the release of proportionate share by concerned State Government and sponsor bank.
As per information reported by NABARD, the total loan issued by RRBs have increased from Rs.56,079 crore during 2009-10 to Rs.71,724.19 crore during 2010-11 registering a growth of 27.89%.
Read more / Original news source: http://manipur-mail.com/bank-accounts-with-zero-balance/
