New Delhi: Keeping in view the misuses of banking benefits meant for the poor in far-off village areas, the RBI has decided to minutely monitor small saving accounts and no-frill accounts.

Fearing the transaction of money among terrorists through these accounts, the government has alerted all such banks.

The opening of small saving account has been made very flexible requiring just a thumb impression initially. The rest of the customer identification formality is carried out by bank later.

As such, the risk factor of misusing the accounts has increased.

Also, banks generally do not monitor small accounts closely which might give an edge to the customers to escape easily even after misusing the account.

Now, Reserve Bank has asked all banks to keep an eye on all small and no-frill saving accounts. It has also said that only those banks should provide saving account facilities which are sufficiently equipped with lending-borrowing surveillance.

Laying further guidelines, RBI has asked the banks to keep a close tab on transaction of huge amount. These banks will not be given the facility to lend, send, borrow or receive money from an international bank. Only those account holders will be allowed for international transactions who have completed the whole process of KYC (Know Your Account).

JPN/Bureau