Banks should hold camps to open bank accounts: RBI
Deputy governor of the Reserve Bank of India KC Chakrabarty asked the banks to adopt a camp approach to open a large number of accounts to capture everybody's bank account first.
June 06, 2013 / 09:23 IST
Moneycontrol Bureau
The Reserve Bank of India (RBI) deputy governor KC Chakrabarty on Wednesday asked the banks to take a camp approach for opening a large number of accounts. Half of India's population still remains unbanked. "Instead of customer coming to bank, the lenders should approach the customers through holding camps. In the process they should also involve local non-governmental ogranisation (NGOs) and local bodies. We are also asking respective state governments to help banks in conducting such branch opening camps. The solution is to capture everybody's bank account first in a camp mode," he said while addressing a banking conference conducted by Indian Merchants' Chamber (IMC) here in Mumbai. Also read: RBI curbs gold import, extends restrictions beyond banksHe refused to link a person's earning status to open a bank account. Currently, opening a bank account does not ask whether a person is employed or not. At the same time he underscored the importance of complying with Know Your Customer (KYC) norms while opening a bank account. "KYC requirement is in the interest of the customer. Our norms are the most flexible in the world and gives a risk profile of a customer", he said. Speaking on the mid-quarter policy announcement which is scheduled on June 17 (Monday), he said that the central bank would take into consideration all the factors including the wholesale price index (WPI) inflation. It is widely believed that banks show some amount of flexibility while lending to big corporates. However, small businessmen (for SME loans) or retail borrowers are supposed to go through a lot of stringent formalities in availing credit. Commenting on this, Chakrabarty said, "This is society's rule where rich are always pampered. Within its systemic structure, RBI cannot change it but society has to change. Banks don't practice this (lending formalities) as per RBI instructions. However, the commerce for poor is more viable than the commerce of the rich."The deputy governor harped on the issue of financial inclusion; underlining the role of business correspondents (BCs). "It is not that the BCs have to stay closer to the bank branches. There are many instances where BCs operate within a 20-km radius from a bank's branch," he said.To restrict rising gold imports, the RBI extended the restrictions on gold imports from banks to all other nominated agencies or star trading houses. Commenting on this issue Chakrabarty said, "People should boycott gold. What we are saying, public money cannot be used for that purpose (gold buying). If you have money and buy gold from abroad, we are not stopping you.”saikat.das@network18online.com
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