NITI Aayog proposes anywhere banking for deposits and withdrawals

Banking in India is set to be revolutionised if NITI Aayog's latest proposals are accepted.

Aseem Manchanda reports that NITI Aayog has sent a proposal to the Government stating that customers should be able to deposit or withdraw money from their accounts from any bank.

For example, an HDFC Bank customer could go to an ICICI Bank branch and deposit money in their HDFC Bank account. NITI Aayog's proposal states that it isn't compulsory for a customer to have an account in the bank they are visiting to deposit or withdraw money. 

Simply put, NITI Aayog envisions banks to work like ATMs. Currently, one can withdraw money from any bank's ATM. On the same lines, anywhere banking for deposits and withdrawals is what NITI Aayog is batting for. 

Sources told Zee Business that finance ministry has given its in-principle approval to the proposal. Consultations with Reserve Bank of India (RBI) on this matter have begun, they said. 

According to the proposal, first three transactions each month will be free. First phase or the trial of this proposal will be carried out only at Public Sector Banks (PSBs). 

Sources also said that an announcement to this effect may be possible during the next round of banking reforms.