The Reserve Bank of India (RBI) on Monday said that all the scheduled commercial banks and payments banks will be excluded from the RBI's August 6 circular, in which the regulator specified certain rules for the opening of current accounts by banks.
The new rules will come into effect from December 15 i.e today.
The central earlier said that current accounts can only be opened in banks where the borrower company has loan accounts. This was to ensure loan money is not siphoned. However, RBI on Monday eased the rules.
According to the new relaxed rules, accounts for real estate projects, Escrow/nodal accounts of payment aggregators, accounts for settlement of dues related to debit/credit or ATM cards, etc. will be exempted.
"On a review, it has been decided to permit banks to open specific accounts which are stipulated under various statutes and instructions of other regulators/regulatory departments, without any restrictions placed in terms of the above-mentioned circular dated August 6, 2020," the RBI said in a circular.For more details, watch video.