Responding to the concerted efforts of the Ministry of Minority Affairs, the Reserve Bank of India (RBI), on Monday, issued a memorandum to all the Scheduled Commercial Banks to ensure opening of no-frills account or other accounts for students from the minority community or other disadvantaged groups, for availing various scholarships or other benefits offered by the government.
According to a statement by the Union Ministry for Minority Affairs, this will go a long way in helping lakhs of students, since they have been reportedly facing problems in opening bank accounts to draw their scholarship amount.
In this context, Ministry of Minority Affairs Secretary 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, the Ministry of Finance, and also with the RBI.
Responding to this concern, the RBI issued the advice to all Scheduled Commercial Banks. However, while opening such accounts, KYC (Know Your Customer) norms will have to be followed, it stated.