Reconsider burden of rural banking on PSUs
However, for a developing nation, a bank initially nurtured with public money making itself less accessible by tweaking MAB norms is unfortunate. Banking, like many other public services, is also a social vehicle that provides access to credit and digital transactions for the teeming millions. RBI Governor Sanjay Malhotra has clarified the regulator cannot compel the bank to change its MAB norms. Maybe it's time to review the onus of rural banking, or banking for the poor, on the state-run banks. Banking may take a leaf from telecom, which tried to bridge the digital divide by instituting a universal service obligation to extend services to commercially less viable areas. Meanwhile, ICICI Bank could review its stance before transiting to become a 'rich-only' bank.
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