Banks to Provide Zero Balance Accounts to All
These accounts, however, vary from salaried and corporate accounts. Corporate accounts also provide zero balance but they also provide related services, like - cheque-books and unlimited ATM transactions. They may also provide extra features, like - free monthly statement facilities and privilege banking.
Shyam Srinivasan, CEO and MD of Federal Bank, says, “There is nothing new about the idea of a basic or no-frills account. RBI is basically trying to bring more and more people under the banking umbrella.”
According to an official of Punjab National Bank, “No-frills accounts were generally opened for underbanked customers. Now, extending it to all customers may have some impact on banks as interest will be earned on the savings account balance.”
