Business Desk, Amar Ujala, Mumbai
Updated Tue, 15 Dec 2020 07:50 PM IST
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The standards were to come into effect from November 5, but in the absence of some clarification, the central bank postponed them until December 14. According to the new circular, it will be mandatory for customers to open their current account or overdraft account in the same bank from where they are taking loans. Let me tell you that this rule will apply to customers who have taken a loan of more than Rs 50 crore from a bank.
Why did the RBI have to take such decisions?
According to the Reserve Bank, it has often been observed that bank customers take loans from one bank and open a current account by going to another bank, making it very difficult to track the company’s cash flow. Therefore, the RBI issued a circular stating that no bank should open a current account of customers who have availed cash credit or overdraft facility from elsewhere.