RBI to start no frills account to cover all households | india | Hindustan Times
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RBI to start no frills account to cover all households

RBI on Thursday said it has decided to cover all households with any one of the photo ID cards including Electors Photo Identity Card, for opening a ‘no frills account’ by March next as part of efforts to bring them under financial inclusion.

india Updated: May 14, 2009 23:31 IST

RBI on Thursday said it has decided to cover all households with any one of the photo ID cards including Electors Photo Identity Card, for opening a ‘no frills account’ by March next as part of efforts to bring them under financial inclusion.

The target is that at least 50 per cent of these accounts are made operational by encouraging the account holders to avail credit and other benefits, RBI Governor D Subbarao said.

About 8,000 villages with at least 2,000 population would be identified to bring the households under the scheme,he said

He said Karnataka has claimed that it had achieved 100 per cent financial inclusion but disagreed with it,saying “it is not accurate.There seems to be no understanding on what financial inclusion is. Mere opening a no-frill account does not mean financial inclusion has been achieved. The accounts should also be made operational”, he told reporters.

RBI is celebrating its platinum jubilee this year. “RBI would initiate a programme to impart financial literacy to students to enable them understand the financial system,he said. “We want to incorporate in the curriculum the basics of the financial sector and our aim is that all students passing out of schools and colleges should have a minimum knowledge of financial sector,” he said.

In the wake of Chief Minister B S Yeddyurappa assuring required assistance to the programme, RBI will be launching the project in the Karnataka, he said.