10 January 2021
First ensure that you have both Current and CC accounts with the same bank. if it's so, the process is to submit a request letter to your Bank seeking permission to continue the current account. If the reason is genuine, banks do allow you to continue operate current account
10 January 2021
If the accounts are maintained in separate banks, then your Bank is correct. You can only operate your CC account and the current account has to be closed. Exceptions are unlikely
10 January 2021
The intention behind the RBI circular is that the businesses,that have availed Cash credit or other working capital credit facilities, should route all the transactions through their Cash credit /working capital account only. If businesses continue to maintain separate accounts, tracking the same will be tough.
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