Higher FDI cap won't affect PSBs' financial inclusion commitment

The government's guarantee mechanism for startups is likely to improve lending to the sector in the coming years, says UCO Bank Managing Director and Chief Executive Officer (MD&CEO) Ashwani Kumar. In a telephonic interview with Harsh Kumar, he also discusses the expansion plans of the bank. Edited excerpts:

- Ashwani Kumar

How is your bank addressing inoperative accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY)?

We are conducting a saturation drive for inoperative PMJDY accounts, meeting customers one-on-one to encourage them to operate their accounts. The main issue we face is that some customers have multiple accounts across different banks, and are receiving DBT (Direct Benefit Transfer) benefits elsewhere. We have opened various options to make the accounts operative. Even for closures, we take customers' consent first.

How are you dealing with minimum balance requirements in savings accounts?

Our earnings from minimum balance penalties were around ₹70-75 crore. However, on the decision of removal of it, we will first present this matter to the board, and based on the board's decision, we will take necessary steps regarding the future of minimum balance requirements.