What Are Banking Basics?

by Arpita Wadhawan
Banking Basics

When it comes to banking and banking basics, you will find that most of the public, especially in the rural areas are still woefully ignorant of banking basics or the essential importance of banking itself. As hard as it may be to believe, most of the people in the rural areas did not even have access to a proper bank account and many often bury their important assets so as to protect them. As antediluvian as it seems, thankfully it has all changed in the last few years, due to our PM’s flagship project, PMDJY. Thanks to this project, over 20, 00, 00,000 of the public registered for a bank account.

Banking basics

As a citizen, it is vital that you have access to a valid and operative bank account since you can use the same to register with various government agencies and receive government sanctioned rebates directly to your account. The whole notion behind the PMDJY scheme was to let the public know that they would become eligible for various government rebates and cash transfers once they set up a bank account. More importantly, they were informed that by setting up a bank account that can help facilitate bank transfers from the GOI directly to their accounts, they would also get debit cards and use both to transfer funds instantaneously to other accounts. Naturally, the various public service messages worked to the point that 20 lakh people enrolled for a new bank account. Thanks to these public service messages, more of the public are aware now of banking basics and what they need to do to set up an account.

Minimum balance

In view of the PMDHY scheme, several banks have opted to remove the ‘minimum balance maintenance charge’, and make the respective bank accounts opened under the PMDJY scheme completely free. In other words, you would not be required to maintain any minimum balance nor would you be charged for the same. On the whole, these are some of the main reasons that PMDJY is such a great success and one that has certainly lead to more Indians setting up bank accounts.

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