(LiveMint)
The Reserve Bank of India eased some of the requirements of its current account guidelines for banks issued last year, allowing them to open credit facilities for state-run companies without any restrictions. The development comes after RBI took into account the feedback received from Indian Banks’ Association (IBA) and other stakeholders.
In August, RBI extended the deadline for implementing the new current account norms by three months till October end, following requests from banks. This extension came a year after the central bank introduced guidelines around current account opening to ensure credit discipline and check diversion of funds.
According to the revised rules released by RBI, banks can open current accounts of all financial institutions, including NABARD, National Housing Bank, Exim Bank and SIDBI, without any restriction. Banks can also open current accounts under specific instructions of state and central governments. It can also open accounts attached by the orders of central or state governments, regulatory bodies, courts, investigative agencies, where a customer does not have a say.
