Quick Summary
The Reserve Bank of India had issued certain guidelines to enforce credit discipline amongst the borrowers as well as to facilitate better monitoring by the lenders. Now, the RBI has specified guidelines for implementation of the circularon Opening of Current Accounts by Banks. Read the official cir
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The guidelines are intended to enforce credit discipline among borrowers and facilitate better monitoring by lenders.
Banks are permitted time until October 31, 2021, to implement the provisions of the circular.
If a borrower hasn't availed CC/OD and the banking system's exposure is less than ₹5 crore, there are no restrictions. If the exposure is ₹5 crore or more but less than ₹50 crore, lending banks can open accounts, and non-lending banks can open them for collection purposes only.
Accounts of White Label ATM operators, their agents, Cash-in-Transit (CIT) Companies, and Cash Replenishment Agencies (CRAs) are exempt.
No, banks are not permitted to open current accounts for borrowers who have availed agricultural/personal Overdraft (OD) or OD against deposits.
CAclubindia
