The Reserve Financial institution of India (RBI) has eased the present account guidelines for financial institution exposures lower than ₹5 crore. The choice was taken after the suggestions from Indian Banks’ Affiliation (IBA) and different stakeholders.
“It has been determined that banks could open present accounts for debtors who’ve availed credit score services within the type of money credit score (CC)/ overdraft (OD) from the banking system,” RBI stated in an announcement.
For debtors, the place the publicity of the banking system is lower than ₹5 crore, there isn’t a restriction on opening of present accounts or on provision of CC/OD facility by banks, topic to acquiring an endeavor from such debtors that they shall inform the banks, as and when the credit score services availed by them from the banking system reaches ₹5 crore or extra.
Additional, different lending banks could open solely assortment accounts topic to the situation that funds deposited in such assortment accounts will likely be remitted inside two working days of receiving such funds to the CC/OD account maintained with the above-mentioned financial institution sustaining present accounts for the borrower.
Supply: Live Mint