14 January 2021
If a person have a Current account in bank A With Cash Credit Facility, As per Rbi Rule if he wants to open Current account with Bank B he want to give NOC of bank A to Bank B for account opening.
That rule prepared by Rbi to stop The fund diversions,
But if the person recieves the money ( cash flow ) in cash and hoards it how can a bank prevent the person to defraud him ??