RBI gave this big order related to current account to banks, deadline fixed on July 30!

 

RBI gave this big order related to current account to banks, deadline fixed on July 30!



The Reserve Bank of India has ordered all banks to give up current accounts of all companies and transfer them to other banks whose exposure is less than the cut-off set by the Reserve Bank. The Reserve Bank had also sent a letter to the banks about this about 15 days ago. About a year ago, the Reserve Bank started working in this direction. Because of this, current accounts with lots of lucrative offers may migrate from multi-national banks to public sector banks and some of the biggest private sector banks in India.

What is the new rule?

According to the new rule, that bank cannot maintain the current account of any company, which does not have even 10 percent of all the facilities provided to the companies. These facilities include loans, non-fund business such as guarantee and daylight overdraft or intraday. Some banks are also trying to increase their facilities beyond the cutoff of 10 per cent in order to retain their current accounts with them.

Banks are preparing for account shifting

The Reserve Bank is very sad to see that the shifting of accounts on behalf of banks is taking a lot of time. However, one of the reasons for this delay can also be that many PSU banks are not ready with the technology. The Reserve Bank cannot give these orders directly to companies which have been doing business with banks for years. There was a time when many banks and companies opposed it, but later they have also understood that it is necessary to do so.



Comments

  1. UnknownJuly 2, 2021 at 2:58 AM

    I do not find this is a good decision.Company should have the liberty to transact as per their choice.

    ReplyDelete
  2. J ShahJuly 2, 2021 at 3:25 AM

    RBI can not force company for operation system of the account

    ReplyDelete
  3. sadagopan srinivasanJuly 2, 2021 at 4:23 AM

    There should not be unfettered freedom to companies to act as they like . In larger interests restriction becomes necessary .

    ReplyDelete
  4. JamesJuly 3, 2021 at 12:50 AM

    This is only to favour the big companies which hold most of the private sector banks.

    ReplyDelete
  5. UnknownJuly 3, 2021 at 10:53 PM

    Whatever necessary to control fack account must be done but small business specially people who are retired & doing small business for survival be allowed to continue.

    ReplyDelete
  6. UnknownJuly 4, 2021 at 4:34 AM

    City Union Bank all of a sudden insist current account holders to keep minimum balance of Rs 50000/-. Penal charges are levied for not maintaining the QAB. While other banks ask the customers to keep only Rs.5000/- as minimum balance, this unfair implementation seems to be unfair.If you close the account on this reason then closure charges are levied. As they have not given prior intimation to customers charging closure charges appears to be illegal. Will this not be a good case under Competition Law? Can anybody suggest?

    ReplyDelete

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