RBI extends deadline on current account guidelines

The Reserve Bank of India (RBI) has allowed banks time till October 31, 2021 to implement its guidelines on opening and operating of current accounts. In a letter to banks, the RBI said its restrictio

The Reserve Bank of India (RBI) has allowed banks time till October 31, 2021 to implement its guidelines on opening and operating of current accounts. In a letter to banks, the RBI said its restriction on current accounts applies to borrowers in case they avail of CC/OD [cash credit/overdraft] facility, since all operations that can be carried out from a current account can also be carried out from a CC/OD account, as banks in a CBS environment follow a one-bank-one- customer model as against a one-branch-one-customer model. “We have received requests from the banks for some more time to resolve the operational issues while implementing the circular in letter and spirit. Therefore, in order to ensure that the instructions are implemented in a non-disruptive manner, it has been decided that banks will be permitted time till October 31, 2021 to implement the provisions of the circular,” the RBI said.