Sign Up

Continue with Google
or use


Have an account? Sign In Now

Sign In

Continue with Google
or use

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

You must login to ask question.

Continue with Google
or use

Forgot Password?

Need An Account, Sign Up Here
Taxchopal Logo Taxchopal Logo
Sign InSign Up

Taxchopal

Taxchopal Navigation

  • Home
  • About Us
  • Services
  • Blog
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Services
  • Blog
  • Income Tax
  • GST
  • Accountancy
  • Finance
  • Corporate Laws
  • Others
  • Users
  • Home
  • About Us
  • Services
  • Blog
Home/ Questions/Q 6197
Next
In Process
Ravigovind.ca
  • 1
Ravigovind.caBeginner
Asked: December 16, 20212021-12-16T10:26:03+05:30 2021-12-16T10:26:03+05:30In: Finance

What are the implications of RBI guidelines on current account

  • 1
What are the implications of RBI guidelines on current account
RBI guidelines on current account
  • 1 1 Answer
  • 73 Views
  • 0 Followers
  • 0
Answer
Share
  • Facebook

    1 Answer

    • Voted
    • Oldest
    • Recent
    1. CA Sanjiv Kumar Enlightened Chartered Accountant
      2022-03-22T12:28:27+05:30Added an answer on March 22, 2022 at 12:28 pm
      This answer was edited.

      RBI issued guidelines for the opening of multiple operating accounts by borrowers, both current accounts, as well as cash credit (CC)/overdraft (OD), accounts to curb diversion of funds and fraud with banks. By these guidelines, banks will be having complete information of the banking exposure of thRead more

      RBI issued guidelines for the opening of multiple operating accounts by borrowers, both current accounts, as well as cash credit (CC)/overdraft (OD), accounts to curb diversion of funds and fraud with banks. By these guidelines, banks will be having complete information of the banking exposure of the clients and can easily access their potential and credit limit for further credit. It will not only strengthen their banking system but also will reduce the chances of NPA and bad loans. However, Now banks have to create such infrastructure to implement these guidelines. 

      These Guidelines are as under:

      1. Borrowers who have availed credit facilities:  no bank can open current accounts for customers who have availed of credit facilities from the banking system. All transactions should be routed through the CC/OD account.
      2. Borrowers who have not availed of CC/OD facility from any bank: if a bank has less than 10 % of the borrower’s credit exposure, then debits to the CC/OD account can only be for credit to the CC/OD account with a bank that has 10 % or more of the credit exposure. By this restriction on debits from smaller accounts, the RBI intends to check the diversion of funds and keep the banking activity within the key consortium lenders to the borrowers.
      3. Borrowers who have not availed of CC/OD facility from any bank: For these customers, banks may open current accounts if the banking exposure of this customer is less than Rs 50 crore. Here, current accounts of borrowers can only be opened/maintained by the escrow managing bank.

      For details guidelines, the following link can be referred to: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12137&Mode=0

      See less
      • 0
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp

    Leave an answer
    Cancel reply

    You must login to add an answer.

    Continue with Google
    or use

    Forgot Password?

    Need An Account, Sign Up Here
    Continue with Google

    Sidebar

    Ask A Question

    Stats

    • Questions 796
    • Answers 504
    • Posts 11
    • Users 202
    • Popular
    • Answers
    • Ankit

      Is interest paid on home loan included in the cost ...

      • 3 Answers
    • admin

      What are the different types of accounting?

      • 1 Answer
    • admin

      What income do I have to pay taxes on?

      • 2 Answers
    • CA Sanjiv Kumar
      CA Sanjiv Kumar added an answer Hi Ankit, Buying a property from an NRI will require… July 15, 2025 at 11:43 am
    • CA Manish Kumar Gupta
      CA Manish Kumar Gupta added an answer No, Notarization or Registration of a Will is Not Mandatory… June 20, 2025 at 2:32 pm
    • CA Manish Kumar Gupta
      CA Manish Kumar Gupta added an answer Hi You can mention ancestral property in your Will only… June 20, 2025 at 2:30 pm

    Related Questions

    • CA Manish Kumar Gupta

      Is there any summary of Budget 2023?

      • 1 Answer

    Top Members

    CA Sanjiv Kumar

    CA Sanjiv Kumar

    • 271 Questions
    • 3k Points
    Enlightened
    CA Vishnu Ram

    CA Vishnu Ram

    • 189 Questions
    • 3k Points
    Enlightened
    CA Manish Kumar Gupta

    CA Manish Kumar Gupta

    • 4 Questions
    • 1k Points
    Enlightened

    Trending Tags

    interest paid on personal loan QRMP Scheme under GST RBI guidelines on current account

    Explore

    • Home
    • Services
    • Blog
    • Income Tax
    • GST
    • Accountancy
    • Finance
    • Corporate Laws
    • Others
    • Users

    Footer

    • Terms of Service
    • Privacy Policy
    • About Us
    • Contact Us

    © 2021 Taxchopal. All Rights Reserved.

    Insert/edit link

    Enter the destination URL

    Or link to existing content

      No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.