BoM launches 'no frills' accounts

Soon after the government issued guidelines to introduce "no frills" accounts for poor sections of the society who were not able to maintain bank accounts as they could not afford the minimum balance criterion, the Bank of Maharashtra (BoM), has today launched a savings scheme for them.

The scheme is known as Mahabank Lok Bachat Yojana and the initial deposit amount is as low as Rs 1. As minimum balance criterion is not applicable, people below the poverty line are eligible to open accounts under this scheme.

Explaining the features of the scheme, a bank official said that there is no restriction on the number of transactions in these accounts. It is initially introduced for all rural and semi urban branches of the bank and may be extended to other areas over a period of time. More than 60% of the branches of the bank are in rural and semi urban areas.

These areas have a huge population of poor, who are deprived of basic banking facilities. Barring a few facilities such as cheque book, ATM debit card and collection of third party cheques, all other privileges available to regular savings bank account holders are available under this scheme.

The rate of interest applicable for these accounts is also at par with other savings bank accounts - which is 3.5% at present. The bank has also launched another scheme designed for the youths, Mahabank Yuva Yojana.

Under this scheme, youngsters over 13 years of age can open a savings or recurring deposit account with a very low initial amount of Rs 10. Such savings accounts are entitled for ATM debit card and no minimum balance criterion is applicable to them.

---

EASY BANKING

INITIAL DEPOSIT amount is as low as Rs 1 so that even those who cannot afford the minimum balance criterion can open an account

NO ATM debit card and cheque books but all other facilities available