RBI eases current a/c rules for exposures below Rs 5 cr

In respect of borrowers where exposure of the banking system is Rs 5 crore or more, such borrower can maintain current accounts with any one of the banks with which it has CC or OD facility.

India’s reserve position with the IMF rose $10 million to $5.240 billion in the reporting week, as per RBI. (File)

The Reserve Bank of India on Friday relaxed current account rules for bank exposures less than Rs 5 crore, allowing banks to open current account, cash credit (CC) and overdraft (OD) facilities without any restriction.

However, in respect of borrowers where exposure of the banking system is Rs 5 crore or more, such borrower can maintain current accounts with any one of the banks with which it has CC or OD facility, provided that the bank has at least 10 per cent of the exposure of the banking system to that borrower, the RBI said in a circular.

This has been decided after taking into account feedback received from Indian Banks’ Association (IBA) and other stakeholders, the RBI circular said.

Tags:
RBI

Prashant Kishor: ‘Democracy not weak… Those saying people will lose vote rights are fools’

Political Pulse1 hr ago

Political strategist-turned-politician Prashant Kishor launched his Jan Suraaj Party (JSP) after three years touring Bihar. The coming Assembly polls will be the first test of his goal to emerge as the third alternative in Bihar politics. Kishor speaks to The Indian Express about his party’s campaign, and the issues being raised by his rivals.

View all shorts

Live Blog