Be proactive in opening no-frills accounts for minorities: RBI

In a notification issued today, the apex bank said the Ministry of Minority Affairs had brought the matter to its notice."It has been brought to our notice by ... Ministry of Minority Affairs that banks are not opening 'no-frills' accounts in favour of students from minority communities who wish to avail of the scholarships ... This is causing hardship to the applicants for scholarship schemes of the government and is inviting criticism," RBI said.
It added: "You (RRBs) are advised to ensure opening of no-frills accounts or other accounts for students from minority communities and other disadvantaged groups to enable them to avail of various scholarships or other benefits offered by the government."

In its annual policy statement of 2005, the central bank had asked all to make available a basic banking 'no-frills' account either with nil or very low minimum balances as part of its financial inclusion project.Minority students are one of the focus groups for the purpose.