Press Information Bureau

Government of India

Ministry of Finance

18-May-2012 16:23 IST

Bank Accounts with Zero Balance

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.

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DSM/SS/Hb

No frills bank accounts for financial inclusion: directive requires banks to offer accessible low or zero balance accounts. Reserve Bank directive requires scheduled commercial banks to offer basic no frills accounts with nil or very low minimum balances and minimal charges to promote financial inclusion. As reported to the legislature, the aggregated number of such accounts with public and private scheduled commercial banks (excluding regional rural banks) at end March 2012 was 1,032.06 lakh, evidencing regulatory focus on expanding basic account access and monitoring uptake.