RBI appeals against currency garlands, says poor can also open zero balance account in foreign banks
Mumbai: Making garlands of currency notes, a practice followed in Indian marriages and political rallies, has been sought to be discouraged by the Reserve Bank.
"The Reserve Bank of India has appealed to members of public not to use banknotes for making garlands, decorating pandals and places of worship or for showering on personalities in social events, etc," an RBI release said on Wednesday.
Such actions, it said, deface the banknotes and shorten their life.
"...banknotes should be respected as they are a symbol of the Sovereign and public should not misuse them, and help in increasing the life of banknotes," the RBI added.
The Reserve Bank also stated that it has been taking all measures to supply clean banknotes across the country and urged the members of public to contribute their mite to its efforts in pursuing a 'clean note policy' for the country.
In past too, the RBI had made a similar appeal.
There is no specific provision under the Banking Regulation Act, 1949, or under RBI Act, 1934 to check or prevent such misuse of currency notes.
Next: Poor can also open zero balance account in foreign banks: RBI
Poor can also open zero balance account in foreign banks: RBI
Mumbai: People belonging to weaker sections in the country can also open zero balance accounts in foreign banks such as HSBC, Citibank and Standard Chartered Bank and avail free ATM-cum-debit card facility.
The Reserve Bank on Wednesday said its 'Basic Savings Bank Deposit Account (BSBDA) guidelines are applicable to 'all scheduled commercial banks in India, including foreign banks having branches in India'.
Under the BSBDA scheme, any individual, including poor or those from weaker section of the society, can open zero balance account in any bank.
The RBI said there is no requirement for any initial deposit for opening such accounts.
As per the central bank's guidelines, the BSBDA should be considered a normal banking service available to all and the account should not have the requirement of keeping any minimum balance.
"Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA," RBI said.
The services available free in BSBDA scheme include deposit and withdrawal of cash; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques at bank branches as well as ATMs cards. However, holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank.
If a customer has any other existing savings account in that bank, he or she will be required to close it within 30 days from the date of opening a BSBDA. The aim of introducing BSBDA is part of the efforts of RBI for furthering financial inclusion objectives.
There are 43 foreign banks with over 330 branches operating in the country.
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