Categories: Business

RBI asks bank not to open current account for customers having CC, OD facilities


RBI asks bank not to open current account for customers having CC, OD facilities

new Delhi. The Reserve Bank on Thursday banned banks from opening current accounts for customers who have availed cash loans or overdraft facilities. He insisted that discipline is needed in this case. In a notification, the central bank said that all transactions should be done through a cash loan (CC) or overdraft (OD) account, compared to opening a new current account. However, the RBI did not say what was the reason behind the move. It is noteworthy that in the over Rs 4,000 crore PMC Co-operative Bank scam case several accounts were opened. Officials say that the fraud that was done with this system, which was disturbed, would be curbed. This will ultimately conserve depositors' money.

Reserve Bank Governor Shaktikanta Das said on Thursday, "It is necessary to take appropriate steps for debt discipline." He said that concerns were being raised about the use of multiple accounts by borrowers. In view of this, it is necessary to take precautionary measures to open such accounts by borrowers availing loan facility from many banks. According to RBI, banks need to be disciplined regarding opening of current account. No bank will open current accounts of customers who have availed loan facility in the form of cash loan (CC) / overdraft from banks. All transactions of these customers can be done through CC / OD account.

This post was published on August 7, 2020 12:54 am

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