2  BIS central bankers’ speeches  freer capital mobility, transparent rules and regulations, and fair competition based upon reciprocity. In addition, a clear roadmap should be in place to enable the private sector to prepare itself well in advance for the changes that are coming.
Hence, the need to transact is not there. If the banks want customer acquisition and that poor customers transact with them, they must permit overdrafts in the accounts. To begin with, very small amounts such as Rs 200, Rs 500 etc. could be sanctioned. The needs of the poor for consumption smoothing and for lifecycle events such as medical emergency, weddings, funerals, etc.