IOB to launch no-frills account at 60% of its rural branches

Indian Overseas Bank aims to introduce 'no-frills account' in 60 per cent of its 1,500 branches in rural areas. Addressing a press conference, T S Narayanasami, chairman and managing director, IOB, said that for the rural customers, the minimum balance to be maintained for the account will be Rs 5.

The procedure for opening the account has been simplified so as to make the entire process hassle-free and rural customer-friendly, he added.

The no-frills account will be covering three or four economic activities under agriculture and allied activities, tiny sector (cottage and village industries) and the artisans engaged in handicrafts and other such activities.

An official of the bank said that no-frills accounts would provide access to the large rural masses and therefore the cost involved in it will be very nominal.

Reserve Bank of India Annual Statement of April 2005 had urged banks to promote financial inclusion so as to attract vast sections of population to the banking fold. RBI has also advised banks to make available a basic 'no-frills account' so as to achieve the objective of greater financial inclusion.

S Elangovan, deputy general manager, said that the bank will also launch a mobile-van bank project. A specially designed and custom-made van, with necessary audio-visual equipment and computers, will be attached to IOB's rural training centres which are functioning at Karaikudi, Tirunelvi and Thanjavur.

The mobile van will visit selected villages, where the majority of the inhabitants are yet to gain access to banking services will be selected on a priority basis, he added.