Reserve Bank of India Governor Sanjay Malhotra stated on Monday that the central bank does not regulate banks’ minimum balance requirements, responding to queries about ICICI Bank’s recent hike for new savings accounts.
During his first visit to Gujarat, Malhotra told reporters in Gozaria village, Mehsana district: “RBI has permitted all banks to keep their own minimum balance. Some banks have kept it at ₹10,000, while some have done away with it. This is not part of the regulatory domain.” He was attending an event organized by the State Level Bankers’ Committee (SLBC) of Gujarat.
The comment follows ICICI Bank’s decision to raise the minimum monthly average balance for new customers in metro and urban areas to ₹50,000 (up from ₹10,000) and in semi-urban locations to ₹25,000 (from ₹5,000).
Re-KYC Push for PMJDY Accounts
Addressing villagers in Gozaria, Malhotra announced that the RBI has started a re-KYC process for Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to curb fraud. “We had begun Pradhan Mantri Jan Dhan Yojana in 2014. We had opened 55 crore accounts. A re-KYC needs to be done after passage of a minimum of 10 years so that the banks have the latest customer identification. This is to prevent the accounts being used for fraudulent activities. This is to secure others and the help of account holders is needed in this,” he explained, noting that banks will handle re-KYC for 10 crore such accounts this year.
Boosting Banking Correspondents
Malhotra also urged banks to enhance the network of Banking Correspondents (BCs) nationwide. “An estimated 17 lakh BCs have been deployed by various banks across the country. Those BCs who are working hard since the last 10-11 years, and are giving good services, they are earning similar to a regular (bank) staff member,” he said, highlighting how BCs equipped with laptops function as mobile banks in the digital age, delivering cost-effective services.
He encouraged rural residents to embrace digital banking, adding: “Without digital literacy, your education is incomplete.”
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