Reforms implementation, the key

.......The Reserve Bank (RBI) has given a direction to banks that anyone with an Aadhaar Card will have a ‘no-frills’ account. The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to the poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. In fact, the RBI has asked commercial banks to convert the existing ’no-frills’ accounts into ‘Basic Savings Bank Deposit Accounts’. While there will be no limit on the number of deposits that can be made in a month, Basic Savings Bank Deposit Account holders will be allowed a maximum of four withdrawals in a month, including through ATMs. Critics argue that access to bank branches may be a problem. Owing to administrative cost it may not be profitable for banks to open bank branches in every village. As a way out, it is now mooted to have a banking correspondent in every village. .........

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