All scheduled banks have been directed by banking regulator, Reserve Bank of India to open up 'no frills' accounts for minority students or other communities which are underprivileged.

The banks have been directed to take special care in opening these accounts when students of the minority community seek them for availing scholarships or similar facilities extended to them by the government, said Minority Affairs Minister Salman Khurshid.

The minister however insisted on strict adherence to 'Know Your Customer' norms while opening these accounts.

The decision came as a follow up of feedback which was received by the government in reluctance being shown by banks in opening accounts to these students.