Current Account Rules for Customers Changed – RBI Changes Significant Account Opening Criteria, Find Out What The New Rules Are

Business Desk, Amar Ujala, Mumbai
Updated Tue, 15 Dec 2020 07:50 PM IST

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The Reserve Bank of India (RBI) on Monday made some significant changes to its current account norms. The central bank stated in its August credit policy that no bank will be able to open a current account in a current account i.e. for a customer availing cash credit or overdraft facility from another bank and now all transactions are cash credit, or overdraft from the account.

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 a current account or an overdraft account with the same bank from which they have taken a loan. We will say that this rule will apply to customers who have taken loans of more than Rs 50 crore from banks.

According to the Reserve Bank, it has been observed many times that bank customers take loans from one bank and open a current account with another, making it very difficult to keep track of 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.

The Reserve Bank of India (RBI) on Monday made some significant changes to its current account norms. The central bank stated in its August credit policy that no bank will be able to open a current account in a current account i.e. for a customer availing cash credit or overdraft facility from another bank and now all transactions are cash credit, or overdraft from the account.

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.

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Why did the RBI have to take such a decision?

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