• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai , Oct. 25

THE Reserve Bank of India has asked banks to make available "no frills" account either with "nil" or very low minimum balances so as to make banking services accessible to more people.

The RBI had noted in its policy in April, that current practices followed by some banks tend to exclude large number of people. Urging banks to become more financially inclusive, RBI has asked banks to give wide publicity to this move.

The move could be targeted at a couple of private and foreign banks which have set high requirements in terms of minimum balances, as well as restrictions on the number of transactions either at the branch or at an ATM.

Public sector banks have often argued that they are at a disadvantage in the battle for clients. While their clientele is heterogeneous (from rickshaw drivers to millionaires), private and foreign banks have had the freedom to cherry pick a more "affluent" clientele.

The RBI move could be seen as the first step in levelling the playing field.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mid-Year Review of the Annual Credit Policy — Managing inflation, encouraging growth

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line