KCCI urges Indian Banks Association to facilitate ease of banking

The Kanara Chamber of Commerce and Industries (KCCI) on Friday told the Indian Banks Association that banks have gone beyond Reserve Bank of India restrictions on opening multiple accounts by business

The Kanara Chamber of Commerce and Industries (KCCI) on Friday told the Indian Banks Association that banks have gone beyond Reserve Bank of India restrictions on opening multiple accounts by business entities causing hardship to entrepreneurs. In a letter to association CEO Sunil Mehta, KCCI president Isaac Vas said that the RBI had, on August 6, 2020, imposed certain restrictions on having bank accounts with multiple banks to prevent diversion of funds. While the business community had welcomed the move despite severe inconveniences, several banks were going beyond these guidelines thereby affecting business. He urged the association to advise its members to permit opening of multiple current accounts with the same bank and permit opening of collection accounts with other banks as per the RBI notification. The chamber has been receiving several complaints that such a hurriedly imposed directive from the RBI was causing difficulties. Some banks have closed current accounts abruptly without giving any notice.