The Reserve Bank of India last year came out with new current account rules and the deadline to implement them is October 31. Now, the non-banking financial companies (NBFCs) have written to the Indian Banks’ Association (IBA) asking them to advise banks that these new current account rules not be made applicable to them because of various challenges they are facing.
NBFCs said this has led to an increase in cost for them for transporting large amounts of cash to deposit in a central agency. The second issue is that of safety because of executives carrying large bundles of cash over long distances.
Therefore, this has become a reconciliation and a safety issue as well. It has also led to an increase in costs, which is why NBFC has now sought this exemption. They said that the RBI has already clarified in the FAQs that this should not be made applicable for collections for NHFCs specifically, therefore, banks should also follow this rule.
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