Mumbai: Reserve Bank on Wednesday allows the time for banks until October 31 to implement changes in the current account front, following small business reports that are beaten by freezing accounts in recent days.
The central bank said circular it aims to enforce credit discipline between borrowers and facilitate a better monitoring by lenders, but explains that “a multilevel approach” has been prescribed to the banks about the opening and operation of current accounts and credit / cloudraft cc / od operations , “Banks are asked to implement these instructions in an unobtrusive way while maintaining bona fide business requirements in the mind of the borrower,” RBI said.
It can be noted that for the past few days, small businesses complained about freezing accounts by their banks, because they apply the Slewing Circular to this problem, the last on December 14, 2020.
RBI on Wednesday said it received a request from the bank for more A lot of time to resolve operational problems while applying round in letters and enthusiasm which now expands the date of implementation.
“The Bank will be permitted as of October 31, 2021 to implement the round provisions.
The expanded timeline will be used by the Bank to engage with their borrowers to arrive at a satisfactory resolution in the round amourach,” he said.
If a bank cannot solve any problems, it can be increased to the Association of Bank India (IBA) for guidance and residual problems can be taken with the RBI by the grouping of industrial lobbies to be addressed, RBI said.
The white label account of the ATM operator and his agents was released from the Circular Circular provisions on August 6, 2020, he said, adding that as a cash-in-transit company (CIT) or Cash Filling Agent (CRA) which basically carried out similar activities, Exceptions will apply to this entity too.
Also asked the bank to place a monitoring mechanism, both at the head of the head office and regional / zonal offices to monitor non-interruptive circular implementation and to ensure that customers are not included in the discomfort of implementation during the implementation process.
The RBI also explained that the Bank was not permitted to open the giro for borrowers who had used OD Agriculture / Personal or OD to deposits.
It affirms that in the case of borrowers who have not used CC / OD facilities from any bank, there is no limit to the opening of current accounts by any bank if exposure to the banking system for the borrower is less than RS 5 Crore, while they are in this category that has Exposure to the banking system to RS 50 Crore, lenders can make current asocunt.
Restrictions apply to borrowers if they take advantage of CC / OD facilities because all operations that can be made from current accounts can also be made from CC / OD accounts as banks in the CBS environment following one bank followed one bank model -Customer as against the model of one branch -The customer, he said.