Banks not following RBI norms for opening no-frill accounts: FM

Government today 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.