The Finance Ministry has received complains against the public sector banks indicating their reluctance towards opening accounts especially for the migrant workers. The Ministry has warned the lenders to avoid such a practice.

Government has already softened the Know-Your-Customer (KYC) norms for these people. Migrant workers and people who belong to financially excluded sections are allowed to open an account after self-certification. They can also open bank account when introduced by another account holder.

A finance ministry official said, "We had expected banks to aggressively use these provisions but their reluctance has left us confounded."

A migrant worker is allowed to open account with a bank which has a branch at his native place, if he is able to provide a proof of permanent address. The bank can then verify the details of the customer, online.

"Banks will do this within 30 days and in this period customer will be allowed operations to meet the basic day-to-day requirements," said the official.

A senior bank official said, “As of now the RBI has indicated issues with inter-bank account portability. So only those people will benefit who have a working branch in the area of their permanent residence."