By TCN News,
New Delhi: The Reserve Bank of India has issued fresh advice to Scheduled Commercial Banks to ensure opening of no-frills accounts for students from minority communities for availing various scholarships.
Responding to the concerted efforts of the Ministry of Minority Affairs in the wake of widespread complaints from Bihar to Andhra Pradesh, the RBI has issued an advice to all the Scheduled Commercial Banks to ensure opening of no-frills account or other accounts for students from minority community or other disadvantaged groups, when they approach bank, for availing various scholarships or other benefits offered by the Government.
“This fresh advice issued by the R.B.I. will go a long way in helping lakhs of students, as the Ministry of Minority Affairs had been getting feedback from students belonging to Minority Communities that they are facing problem in opening bank account to draw scholarship amount,” said a central government communication today.
It further added that Secretary, Ministry of Minority Affairs, Shri Vivek Mehrotra, took up the issue of allowing such students to open a no-frills account with zero balance with the Department of Financial Services, Ministry of Finance, and also with the R.B.I. Responding to this concern the R.B.I. issued the fresh advice to all the Scheduled Commercial Banks. However, while opening such accounts, KYC (Know Your Customer) norms as appropriate will have to be followed.