(Australia) – Competition watchdog the Australian Competition and Consumer Commission has rejected a banking industry proposal for a basic account for low-income earners.
The ACCC says the proposed structure, suggested by the Australian Bankers' Association (ABA) could dampen competition between the major banks and “result in the proposed minimum features becoming the industry standard”.
The account was to offer:
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fee-free deposits
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no account-keeping fee or minimum account benchmarks
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six fee-free non-deposit transactions, including funds withdrawal, account enquiries and statement requests, no more than three of which could be conducted at a branch
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eligibility to holders of pension, health care or Commonwealth Senior Cards
The ACCC has asked the ABA to come up with another plan but the ABA, which made the proposal on behalf of ten applicant banks, says it is reviewing its position.