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Can pvt ltd company open two account

Suresh Jain (proprietor) (174 Points)

04 April 2015

Dear sir,

One Pvt ltd company has two account. i.e. one current and another Cash credit account in same bank. Company receiving all funds/export payment in cash credit a/c but all cheque of current a/c is dishownering and not making payment to supplier. My question is that any Pvt ltd company can open two (Current and casg credit) account in same bank?? I think it is against RBI guidelines but no written paper is available. Pl suggest.

Suresh

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3 Replies

Vivek Venkataram (Just cleared CS(441/800) now C.A Final Attempt in May 2015) (772 Points)
Replied 04 April 2015

Looked for some material to assist you with but couldnt really find it written anywhere in black and white that its disallowed to open 2 accounts. I would suggest you speak to your banker at the earliest and cross check if they have any rbi notification.

Suresh Jain (proprietor) (174 Points)
Replied 04 April 2015

Thank you Ji.

I talked to my Bank's chief manager also. He replied that company having one cash credit a/c can not open current in same bank and he replied also that it is stirctly against RBI. He is also trying papers but still not found. Please try at your level also.

Thanks

Suresh

Vivek Venkataram (Just cleared CS(441/800) now C.A Final Attempt in May 2015) (772 Points)
Replied 04 April 2015

Definitely Mr. Jain. If he is clear that it is not allowed then best not to go ahead with it and try for some other bank. But do remember to follow up and get the paper work from him for future reference. I will check on my side. Hope this helps. ;)