The Reserve Bank of India (RBI) has expanded the scope of exemptions below its round for “opening of current accounts and cash credit (CC)/overdraft (OD) accounts” by banks.
It has given exemptions for accounts for settlement of dues associated to debit card/ATM card/ bank card issuers, accounts of white label ATM operators and their brokers for sourcing of foreign money, cash-in-transit (CIT) firms/money replenishment businesses (CRAs) for offering money administration providers and accounts opened by a financial institution funding a particular mission for receiving/ monitoring money flows of that particular mission, supplied the borrower has not availed any CC/OD facility for that mission, inter-bank accounts and accounts of All India Financial Institutions (AIFIs).
In the case of debtors the place combination publicity of the banking system is Rs 5 crore or extra however lower than Rs 50 crore, there isn’t a restriction on opening of present accounts by the lending banks, the RBI stated.
Banks are free to open present accounts of potential prospects who haven’t availed any credit score services from the banking system, topic to obligatory due diligence as per their board accredited insurance policies, it added.
