The Reserve Bank of India (RBI) has asked banks that while they should ensure opening of no-frill accounts by members of the minority communities, know-your-customer (KYC) norms should also be properly followed.
In a communication to banks, RBI said the Ministry of Minority Affairs had brought it to the notice of the regulator that banks were not opening no-frills accounts in favour of students from minority communities who wished to avail of government scholarships.
“You (banks) are also advised to ensure opening of no-frills accounts or other accounts for students from minority communities or other disadvantaged groups. However, while opening such accounts, KYC norms, as appropriate, may be followed,” RBI said.
