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Banks' compliance limit with new norms for existing current a/cs extended

Current accounts are widely used by businesses for their daily activities

Banks | Compliance | RBI

Press Trust of India  |  Mumbai 

Illustration: Ajay Mohanty

The Reserve Bank of India on Monday extended the deadline for to comply with new guidelines with respect to existing current accounts.

Current accounts are widely used by businesses for their daily activities.

A Frequently Asked Questions (FAQ) document will be issued to address all the issues raised by regarding implementation of the guidelines for existing current account. The will have time till December 15 to ensure in this regard, according to the

In August, the proposed changes to the current account operations in order to discipline banks to follow better practices, following recent learnings. However, the banks -- especially the private sector and foreign ones -- have voiced concerns.

On Monday, the said that barring one point on how to deal with the existing current accounts, all the other instructions of its August 6 circular remain unchanged.

The circuclar pertained to the new guidelines.

"The banks were advised that in respect of existing current and CC/OD (Cash Credit/ Overdraft) accounts, banks shall ensure with instructions within a period of three months from the date of issue of the circular i.e. by November 5, 2020.

"We have since received several references from banks seeking clarifications on operational issues regarding maintenance of current accounts already opened by the banks," the apex bank said.

Against this backdrop, the RBI decided to extend the deadline till December 15.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, November 02 2020. 21:38 IST