Business Desk, Amar Ujala, Mumbai
Updated Tue, 15 Dec 2020 07:50 PM IST
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The standards were supposed to come into effect from November 5, but the central bank postponed them until December 14 without any explanation. According to the new circular, customers will be required to open their current account or overdraft account with the same bank from which they have taken loans. We will say that this rule will apply to customers who have taken loans of more than Rs 50 crore from banks.
Why did the RBI have to take such a decision?
According to the Reserve Bank, it has often been observed that bank customers take loans from one bank and open a current account with another, making it very difficult to track the company’s cash flow. That is why the RBI has issued a circular that such banks should not open current accounts of customers who have availed cash credit or overdraft facility from elsewhere.