The Financial Inclusion: No-Frill Account

 

A No-Frill account is a basic savings account, which is introducing by Bangladesh bank for the convenience of low-income group of people or the welfare of the marginal people under the commitment of financial inclusion of no server or underserved people. Among the total number of account holders, 85% to 90% are from the Dhaka and Chittagong region based. By including the large number of people in the banking channel, this No-Frill account is the greatest initiative taken by Bangladesh bank.

 The salient features of No-Frill Accounts:

•   Zero balance
•   Zero or nominal charges
•  Initial deposit of TK 10, TK 50, TK 100
•  Quarterly account statements
•  Electronic Fund Transfer
•  ATM card

Who are eligible to open this type of account:

•   Farmers
•   Freedom Fighters
•   Street urchin
•   Underprivileged people
•   Schoolchildren under 18
•   Working children

Such accounts play an important role in inward remittance as not to maintain as minimum balance and no service charges are applicable in this account. In March 2023, from these accounts inward remittance came TK 99.27 million.

 As of March 2023, 31,927 no frill accounts have been opened through 19 different banks, according to the Bangladesh bank data.

Overall, No-Frill accounts have made significant contribution to the financial inclusion of the underserved people. By this no-frill account, financial excluded people bring under the umbrella of formal financial channel.