Unregulated Savings Balances: RBI's Hands-Off Approach
RBI Governor Sanjay Malhotra clarified that banks can set their own minimum savings account balances, outside RBI regulation. While some banks, like ICICI, have raised these requirements, others, like SBI, have removed penalties for non-compliance. Digital literacy and government financial inclusion schemes were also highlighted during his address in Gujarat.
In a candid dialogue with media representatives, Reserve Bank of India Governor Sanjay Malhotra stated that the authority over setting minimum balances for savings accounts lies with individual banks, beyond the mandate of the central bank. This comment came during an event focused on 'Financial Inclusion Saturation Drive' held at Gozaria village in Gujarat.
As private banks, such as ICICI Bank, hike the minimum balance requirement significantly, State Bank of India opts for leniency, choosing not to penalize customers for non-maintenance. Malhotra emphasized the crucial role of digital literacy in economic progression, aligning with the goals of schemes such as the Pradhan Mantri Jan Dhan Yojana.
The event also highlighted ongoing efforts for financial inclusivity, with camps initiated for re-KYC processes and distribution of government scheme benefits. The RBI's push for broader inclusion is underscored by collaborative engagement with local communities and continuous monitoring of financial access initiatives.
(With inputs from agencies.)
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