Cash credit and current account
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 August 2013
If a firm is availing cash credit from one bank (A) for meeting the working capital after proper guarantee etc, can the same firm also open just a current account only with another bank (B)
Is it legal?
Will it not lead to manipulation of credits/payment received/ due to one babk etc?
Is it legal?
Will it not lead to manipulation of credits/payment received/ due to one babk etc?
CMA Ramesh Krishnan
(Expert)
03 August 2013
It is legal only, unless your credit facility agreement with the bank not permits the same
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