‘No-frills’ to be replaced by basic savings a/c

The ‘no-frills’ accounts introduced in 2005 by Reserve Bank of India(RBI) to provide basic banking facilities to poor and promote financial inclusion will be replaced by basic savings a/c, RBI says. This is because the term 'no-frills' is not creates confusion among customers. RBI asked banks to provide the zero balance facility in the basic banking accounts along with ATM-cum-debit cards without any extra charge. The existing ‘no-frills’ accounts will also be converted into ‘Basic savings bank deposit accounts’. There will not be a limit on the number of times one can deposit in this account but can withdraw only four times a month including through ATMs.