Back to Career News

RBI widens scope of exemptions for opening of current accounts

April 20, 2022

RBI widens scope of exemptions for opening of current accounts
The Reserve Bank of India (RBI) has expanded the scope of exemptions under its circular for “opening of current accounts and cash credit (CC)/overdraft (OD) accounts” by banks.
 
It has given exemptions for accounts for settlements of dues related to debit card/ATM card/credit card issuers, records of white label ATM operators, and their agents for sourcing of currency.
 
Cash in transit (CIT) organizations/cash replenishment agencies (CRAs) for providing cash management services and accounts opened by a bank funding a particular project for receiving/monitoring cash flow of that specific project, giving the borrower has not availed any CC/OD office for that task, inter-bank accounts of All India Financial Institutions (AIFIs).
 
On account of borrowers where total openness of the financial framework is ₹5 crores or more yet not as much as ₹50 crores, there is no restriction on the opening of current accounts by the lending banks, the RBI said.
 
Banks are allowed to open current accounts of prospective customers who have not availed any credit facilities from the banking system, subject to necessary due diligence according to their board-approved policies, it added.
Important Links:

Recommended for you ...

Nifty 50 Companies Face Slower Profit Growth in June Quarter
Nifty 50 Companies Face Slower Profit Growth in June Quarter

July 17, 2024

HDFC Bank Trains 3.25 Lakh Youth in High-Demand Sectors
HDFC Bank Trains 3.25 Lakh Youth in High-Demand Sectors

July 16, 2024

Indian Banks Set to Raise Record Rs 40,000 Crore via Infrastructure Bonds
Indian Banks Set to Raise Record Rs 40,000 Crore via Infrastructure Bonds

July 16, 2024

Chat on WhatsApp