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.
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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.
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