Consider non-financial transactions for tagging account status: SBI to RBI

State Bank of India (SBI) has urged the Reserve Bank of India (RBI) to consider allowing non-financial transactions, like checking the account balance, for making inoperative accounts functional.

- ABHIJIT LELE

Current regulatory norms permit to consider only credit and debit transactions for making the account operational.

This request from SBI for tweaking the rules comes in the backdrop of RBI's directive to banks to reduce incidence of inoperative or frozen accounts and also start reporting progress on the same on a quarterly basis to the central bank.