Question : RBI partly eases current account rules for bank exposures less than Rs _
a. 5 crore
b. 4 crore
c. 3 crore
d. 6 crore
Ans. a.
Related facts —
- RBI has recently(October 2021) eased current account rules for bank exposures less than Rs 5 crore.
- Now, banks may open current accounts for borrowers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system.
- The decision came after the RBI reviewed and took into account the feedback received from Indian Banks’ Association and other stakeholders.
- It is notable that RBI in August 2020 had brought in the guidelines around restriction of current accounts opened by banks.
- These were to enforce credit discipline and check diversion of funds.