Some banks unwilling to open ‘no frills’ accounts

Activists have alleged that on account of some branches of public sector banks either unwilling, or making it difficult to open no frills accounts, potential beneficiaries of government welfare scheme

Activists have alleged that on account of some branches of public sector banks either unwilling, or making it difficult to open no frills accounts, potential beneficiaries of government welfare schemes risk losing their benefits.

According to the NGO, Association for Socio Economic Empowerment of the Marginalised (ASEEM), which works towards linking the public with welfare schemes, applicants have been facing problems in opening bank accounts that do not require a minimum monthly balance to be maintained.

“Some public sector bank branches at Khairatabad, Rein Bazaar, Mandi Mir Alam, Chandulal Baradari and Punjagutta, were unwilling to open such accounts. We understand that maintenance of accounts is a concern for banks but the Reserve Bank of India has issued instructions for opening of Basic Savings Bank Deposit accounts and they are free from minimum balance criteria. We have written a letter to the Lead District Manager (LDM) of SLBC, who has given us a positive response,” an office-bearer of ASEEM said.