|Consider the following statements related to No-frill account.|
|1. No-frill account is a type of bank account, with low/zero balance requirement from a normal saving bank's account, with all features.|
|2. It is a type of account, with low/zero balance requirement with extra features removed.|
|3. No-frill account enables financial inclusion of poor people.|
|4. Maximum number of withdrawals are restricted to a particular limit, in No-frill account.|
|Which of the statements given above are correct?|
A) 1 and 4
B) 2, 3 and 4
C) 2 and 3
D) 1 and 3
Correct Answer: B
Solution :[b] Statement 1 is wrong, because No-frill account are accounts of low or zero balance with extra features like ATM card, cheque book are removed. The main aim of No-frill account is financial inclusion. Because, poor people are not able to open bank accounts because of minimum balance criteria, which is quite high normally. But, any No-frill account holder can convert their account into normal savings account, in later period. Maximum number of withdrawals also limited to a particular limit, depending upon the bank.
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