Infosys co-founder and chairman Nandan Nilekani said on Tuesday that people do not use ‘zero balance’ bank accounts due to various charges levied by banks. Describing the problem as ‘solvable’, Nilekani said it is also important to find a solution so that other countries can emulate it.
In fact, an aggressive campaign by the government and banks over the last few years has led to a large section of the country’s population opening bank accounts, but these bank accounts, which are free from the minimum amount requirement, are not happening. Used a lot for transactions. In 2011, only 44 percent of people over the age of 15 in India had bank accounts. Due to the Pradhan Mantri Jan-Dhan Yojana, this figure has changed drastically.
Stopped using the accounts
While addressing the Global SME Finance Forum in Mumbai, Nilekani said that people are not transacting despite having money in their bank accounts. The reason for this is the transaction charges levied by the banks. Nilekani, who is the architect of the Aadhaar card project, said, “In many places, these basic bank accounts are not economically viable to operate. Various charges are levied on these accounts. In such a situation, people have stopped using these accounts. However, he Said that this problem related to the management of banks can be solved.
There are mainly two types of savings accounts – a zero balance savings account i.e. a savings account that does not have any minimum deposit limit, the other a minimum balance savings account i.e. a savings account that does not have less than a fixed amount. The amount can be kept.
What kind of charges do banks charge?
1: Maintenance/Service Charges: All banks charge this charge for maintaining your account. This applies to all types of accounts.
2: Charges for Debit Card: Banks usually issue a debit card as soon as the account is opened, which is not free. All banks charge annually for this.
3: ATM Charges: If you use another bank’s ATM, you will have to pay the charges for the same. Now you can withdraw money from your bank’s ATM for free only 4 times a month.
4: Inadequate Funding: In accounts where a minimum balance is required, banks charge a fee if the money falls below the limit.
5: Overdraft Charges: This does not apply to everyone and not all banks provide this facility. Under this, you can withdraw money up to a limit even if you have no balance.
6: Transfer Charges: You can send money to any other account through UPI, IMPS, RTGS, NEFT. Not all of these are free. Many banks accept money on EMPS transfer.
7: Account Closure Charges: If you close your bank account, the bank may charge you for it.
8: Inactivity Fee: If you do not make any transaction from your account for a long time, the bank deactivates it. Generally its limit is one year.