KOLKATA: The Reserve Bank of India has given more time to banks to comply with the revised current account opening norms to ease their operational glitches.
The regulator changed the rules to prevent the misuse of the current account facility and fund duversions.
The new deadline is December 15 instead of November 5.
RBI suggested that banks should not route drawal from term loans through current accounts. Since term loans are meant for specific purposes, the funds should be remitted directly to the supplier of goods and services.
The regulator also barred banks from opening current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system. It suggested that all such transactions shall be routed through the CC/OD accounts.