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RBI eases current account rules for Bank
October 30, 2021
The Reserve Bank of India on Friday eased current account rules for bank openings not as much as ₹5 crore, allowing lenders to open current account, cash credit and overdraft facilities without any limitation. The regulator asked that banks to implement the changes within one month.
“For borrowers, where the exposure of the banking system is not as much as ₹5 crore, there is no limitation on opening of current accounts or on provision of CC/OD office by banks, subject to obtaining an undertaking from such borrowers that they will inform the bank(s), as and when the credit facilities availed by them from the banking system arrives at ₹5 crore or more,” the RBI said in its rules.
For borrowers where the exposure is more than ₹5 crore, will keep on keeping up with current accounts with any of the banks with which they have cash credit or overdraft facility, given that the bank has atleast around 10% of the exposure of the banking system to that borrower.
The banking regulator likewise allowed banks to open and keep up with between ledgers, all accounts with institutions like EXIM Bank, NABARD, NHB, and SIDBI, accounts attached by orders of central or state government and investigative agencies without any restrictions.
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