Financial Inclusion in Banking Act of 2021

Financial Inclusion in Banking Act of 2021

This bill expands the duties of the Office of Community Affairs within the Consumer Financial Protection Bureau regarding under-banked, un-banked, and underserved consumers. Specifically, the office must (1) report on impeding factors for individuals and families that do not participate in the banking system, and (2) develop strategies to increase such participation.

The bill also decreases, beginning September 30, 2031, the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)

Bill 117 HR 1711, also known as the Financial Inclusion in Banking Act of 2021, aims to increase access to banking services for underserved communities in the United States. The bill was introduced in the House of Representatives on March 10, 2021, by Representative Gregory Meeks from New York.

The main provisions of the bill include requiring banks to offer low-cost, no-overdraft fee bank accounts to consumers who may not qualify for traditional checking accounts. This is intended to help individuals who are unbanked or underbanked gain access to essential financial services.

Additionally, the bill seeks to improve financial literacy and education programs for underserved communities, with a focus on teaching individuals how to manage their finances effectively and avoid predatory financial practices. Furthermore, the Financial Inclusion in Banking Act of 2021 aims to promote greater transparency and accountability in the banking industry by requiring banks to report data on the number of low-cost accounts they offer and the demographics of the individuals who use them. Overall, the bill is designed to address the barriers that prevent many Americans from accessing basic banking services and to promote financial inclusion for all individuals, regardless of their income or background.