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Rediff.com  » Business » No-frill accounts: Some banks not following RBI norms

No-frill accounts: Some banks not following RBI norms

Source: PTI
August 06, 2010 14:19 IST
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The government on Friday admitted that certain banks were not following guidelines on opening no-frill, zero balance accounts in rural areas and said efforts were being made to make banking facilities available to remotest part of the country through various means.

Finance Minister Pranab Mukherjee said in Lok Sabha that certain banks might not be observing guidelines of the Reserve Bank of India in opening no-frill, zero balance accounts in rural areas.

Mukherjee said he has asked banks to listen to the political leadership and the state governments in addressing the grievances of the people.

He was answering a supplementary question by Arjun Singh Meghwal (BJP) on complaints that banks were denying zero balance facility to people in rural areas.

His views were supported by several members across political parties.

He said the chief ministers have been requested to take meetings of state level bankers. Similarly, officers have been directed to meet bank officials at the district level so that the role of the middleman is eliminated.

Stressing the need for a "vigilant mechanism", he said branch officers were being made accountable.

Replying to another question, Minister of State for Finance Namo Narain Meena ruled out special incentives to bank officials for deployment in rural areas. "It is part of their normal work," he said.

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