Module: General Practice
Q195: Scenario: A student opened a "Zero Balance" Savings Account for receiving a Government Scholarship in 2023. The scholarship stopped in 2024. The student has not done any transaction since then. It is now 2026 (more than 2 years). The Bank Manager classifies this account as "Inoperative" and stops debiting transactions. Is the Manager's action consistent with RBI guidelines?
✅ Correct Answer: C
Correct Answer: C. No, because accounts opened for Direct Benefit Transfer (DBT) or Scholarships are exempt… Concept: Segregation of Accounts.
The Rule: RBI Guidelines mandate that banks must segregate accounts opened for specific beneficiaries (like Scholarships, DBT, PMJDY) in their Core Banking Solution (CBS). Protection: These accounts should NOT be automatically classified as "Inoperative" solely due to non-operation for 2 years.
This ensures that when the next scholarship installment finally arrives, it doesn't bounce due to account freezing.
The Rule: RBI Guidelines mandate that banks must segregate accounts opened for specific beneficiaries (like Scholarships, DBT, PMJDY) in their Core Banking Solution (CBS). Protection: These accounts should NOT be automatically classified as "Inoperative" solely due to non-operation for 2 years.
This ensures that when the next scholarship installment finally arrives, it doesn't bounce due to account freezing.