RBI CIRCULAR 6 AUG 20 - Current account

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The Reserve Bank of India (RBI) issued a circular on August 6, 2020, stating that banks should not open current accounts for customers who already have credit facilities like cash credit (CC) or overdraft (OD) from the banking system. All transactions must be routed through the CC/OD account. This means if you have both a CC/OD and a current account with a bank, your current account may be closed, and you should only operate through your CC/OD account.

Amit purohit

Amit purohit (Querist)
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06 January 2021 AS PER RBI CIRCULAR 6 AUG 20

"No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account"

We have CC Account and Current Account in Multiple Banks.

We have receive notice from our one of the bank of close current account where we have CC Facility also.

Whether we can insist our Bank not to close Current Account where our CC Facility is also there.