Change Proposed
Make non-financial transactions eligible for accounts to be deemed operative, says SBI
This story was originally published at 08:08 IST on 4 December 2024
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MUMBAI – State Bank of India has approached the Reserve Bank of India to allow non-financial transactions to be made eligible for an account to be considered operative, SBI Chairman C.S. Setty said on the sidelines of an event on Tuesday.
"Now, the current guidelines say that there should be some debit or credit transaction done (for an account to be considered operative). A lot of people might just be verifying the balance in his or her account, or want to be aware of their account. So, non-financial transactions should also be eligible for an account to be operative. We have taken it up with the RBI, because that will make a lot of accounts operational," Setty said.
Currently, an account, savings or current, is classified as inoperative if no transactions are conducted for over two years. As on Sept. 30, the bank's total deposits stood at INR 51.17 trillion, up 9.13% on year, as per an investor presentation.
"We have very limited number of inoperative accounts," Setty said.
In a notification on Monday, RBI had asked banks to urgently bring down the number of inoperative or frozen accounts and make the account activation process hassle-free. This notification came after a survey conducted by the central bank revealed that the number of inoperative accounts or unclaimed deposits in several banks were on the higher side compared to their total deposits as well as in absolute terms.
On the National Stock Exchange, shares of SBI closed 2% higher at INR 853.95 on Tuesday. End
Reported by Kshipra Petkar
Edited by Avishek Dutta
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