New Delhi: The current account rules for bank exposures less than Rs 5 crore was eased by the Reserve Bank of India (RBI) allowing the lenders to open current account, cash credit and overdraft facilities with no restrictions.
The RBI asked banks for the implementation of the changes within a month.
“For borrowers, where the exposure of the banking system is less than Rs 5 crore, there is no restriction on opening of current accounts or on provision of CC/OD facility by banks, subject to obtaining an undertaking from such borrowers that they shall inform the bank(s), as and when the credit facilities availed by them from the banking system reaches Rs 5 crore or more,” the RBI guidelines said.
For borrowers with exposure in excess of Rs 5 crore, will continue to maintain current accounts with any one of the banks with which they have cash credit or overdraft facility, according to an Economic Times report. The report said that the bank needs to have at least 10 per cent of the exposure of the banking system to that borrower.
The central bank also allowed the banks to open and maintain inter-bank accounts, 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, the report further said.
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