 "Illustration by Binay Sinha")
Foreign banks are set to move their diplomatic missions against the Reserve Bank of India’s (RBI’s) directive that bars borrowers from opening multiple current accounts, with the lenders alleging that this amounts to an “unfair trade practice”.
The banking regulator’s decision, taken in August to curb the rampant fund diversion among borrowers, severely hampers the lucrative cash management business of foreign banks in particular.
A clutch of leading multinational companies (MNCs) and domestic firms are currently engaged with their legal advisors on the recourse available to them. This is only to get a sense of the options on the table, and the
