New Delhi. The central bank Reserve Bank of India has changed the rules regarding bank current accounts. RBI has now extended its deadline till 31 October 2021.
Banks will now have to complete it by following the instructions related to the current account by October 31, otherwise the problems of the account holders will increase. RBI has extended the deadline, saying that now the time has been given till October 31 for banks to implement the new rules for their current accounts.
RBI extended the deadline
RBI has given time till 31 October for banks to implement the rules related to current account or current account. In fact, many small businessmen were facing problems due to the new rules of RBI, due to which they complained to the government, after which the RBI has extended this till 31 October, giving relief. The Reserve Bank had decided to change the rules for opening current accounts in August last year itself. The central bank made a new rule regarding current accounts and said that account holders can open a current account only in the bank in which their loan is running in the bank.
Banks sent account closure notice
After this new rule of RBI, banks started sending bank account closure notices by sending emails and messages to such account holders, whose current account and loan giving banks are different. The bank said to close or freeze such current accounts. Banks gave 30 days to the customers. However, for its full implementation, banks and small businessmen demanded an extension of the deadline. In view of the demand of banks and customers, it was increased to 31 October 2021.
Reason behind RBI order
RBI has given a new order to monitor fund diversion and cash flow. The Reserve Bank of India has instructed the banks of the country and said that banks should not open current accounts of those customers who have taken loans from any other bank. In fact, the Reserve Bank directed the banks not to open current accounts of those account holders whose loan is in another bank, so that it can monitor the cash flow of those customers in this way.
What is current account
Current account is that bank account in which the facility of transaction is given to the account holders. That is, you can do transactions as many times as you want from any branch or ATM of the bank. You do not have to pay any fee for the transaction. These accounts are opened especially by business and business people. In which they get the facility of everyday business transactions. You can easily withdraw the money lying in the account from any bank branch or ATM. However, in this account you do not get interest like a savings account.
