A no frills account is one for which the customer is not required to maintain a minimum balance but which provides basic bank services via internet and phone banking.
Both companies have signed a memorandum of understanding whereby Idea will act as a business correspondent (BC) of Axis Bank.
Axis has launched a remittance pilot between Dharavi in suburban Mumbai and Allahabad in Uttar Pradesh, which will enable money transfer using Axis Bank accounts and Idea's mobile platform. It means that a person in Dharavi will be able to send money home to his family in Allahabad through Axis Bank's mobile platform.
If this pilot is successful, a full range of banking services will be launched across India subject to regulatory approvals.
The companies have said they will consider extending the association to include other banking products and services such as savings, credit, micro insurance, micro systematic investment plan (SIP) and micro pensions, in a phased manner.
SK Mitra, president of the agri business and rural banking division of Axis Bank, said, "We have already undertaken urban and rural financial inclusion initiatives in parts of India through our business correspondents. We were keen to adopt additional delivery channels to drive financial inclusion and were particularly keen on a mobile based channel, considering the reach and the low cost service delivery platform."
As per a PWC report, with the increased adoption of and awareness regarding mobile banking services, the volume of mobile banking transactions are expected to be over 340 million for the year 2015, resulting in cost savings of approximately Rs 11 billion.
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