No minimum balance, more than 4 withdrawals allowed for no-frill accounts

Banks will have to allow at least four withdrawals in a month, including those from ATM, from basic or no-frill accounts, said the Reserve Bank of India (RBI) on Monday.

There will be no limit on the number of deposits in a month. Banks will also have to provide cheque books and cannot ask them to maintain a minimum balance in lieu of facilities.

Earlier, additional facilities made these accounts like regular savings account, thus attracting requirement of maintaining minimum balance and other charges.

The central bank eased regulations for Basic Savings Bank Deposit (BSBD) Accounts, popularly known as 'no-frills' accounts.