The largest lender of the country, State Bank of India is planning to charge its no frill account holders for each transaction they make in order to make feasible the operations of these accounts. No frill accounts were opened by the bank as a part of its financial inclusion program.

According to a senior official of the bank, account holders should not be dissatisfied while paying a nominal fee which can either be based on the amount transacted or a fixed one.

"The question on our minds is -- how do we make the operations of the model feasible? We can recover the Rs 20,000 required for setting up infrastructure in a village through a kiosk or palm-held device by opening around 100 accounts and charging Rs 200 as account-opening fees," the official said.

"You cannot have a model under which the financial inclusion roll-out is subsidised, it needs to be sustainable," he added.

He said that the bank has to maintain a lot of functions like back end systems and payment to the business correspondents appointed for banking operations, he said.

Talking about regulatory issues regarding this move, he said, "though the regulators have given us all the freedom, it is very difficult to say (what their reaction will be)."