Author: Deepshikha Sikarwar
Publication: The Economic Times
Date: March 30, 2007
You may not like it, but your religious affiliation
could be recorded when you open a new bank account. You may now have to disclose
your religion while completing the bank formalities.
Initiating the process for financial inclusion
of minorities, a leading public sector bank - Punjab National Bank - has introduced
new application forms for opening accounts that include a separate column
on religion. Other banks are likely to follow suit in the near future, sources
said.
The finance ministry had written to public
sector banks (PSBs) to collate data on the quantum of minority lending, and
this could be the first step to create the required database. In fact, some
banks may also relax the know your customer (KYC) norms for those belonging
to the minority community or scheduled castes and scheduled tribes. The government
had asked PSBs late last year to make special efforts for financial inclusion
of minorities. The introduction of these new forms is in line with the government's
recommendation and is a step forward in that direction, an official with a
public sector bank said.
He said since the RBI is already collating
data on the financial condition of minorities, a regular column in the form
would help in the data collection process. This, he added, is better then
asking field formations to capture the data if the RBI makes an ad hoc reference
about such inputs. Since the account would also highlight the account holder's
financial condition to a large extent, banks can then look at offering lending
options with the objective of uplifting the status of those at the bottom
of the pyramid in minority communities.
It may be noted that the lending forms already
ask for details about the individual's religious preference, The new account-opening
forms would also shed light on individual's annual income. The government
had asked the Indian Banks Association to consider setting aside part of priority
sector lending for minority communities.
deepshikha.sikarwar@timesgroup.com
