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videos | IST

New current account rules; RBI likely to meet bankers

The Reserve Bank of India (RBI) will meet banks over the current account rules, CNBC-TV18 learned from sources. The banking regulator had last year in August said that the banks can open a current account only for those borrowers to whom they have given at least 10 percent of their total loan exposure.

The Reserve Bank of India (RBI) will meet banks over the current account rules, CNBC-TV18 learned from sources. The banking regulator had last year in August said that the banks can open a current account only for those borrowers to whom they have given at least 10 percent of their total loan exposure.
The trouble was that borrowers would open current accounts in some other banks and divert funds. Hence, the RBI’s move was aimed at checking the diversion of funds and enforcing credit discipline.
After several extensions, the deadline finally ended on July 31.
Banks said that the rules have mostly complied and wherever the borrowers did not comply; they had loans with other banks but current accounts with them, they froze those accounts.
Watch the accompanying video of CNBC-TV18’s Latha Venkatesh for more details.