UPSC General Studies Sample Paper General Studies Sample Paper-10

  • question_answer
    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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