Reserve Bank of India makes certain exceptions to current account norms

The Reserve Bank of India (RBI) on Monday made certain exceptions to its current account norms in terms of specific accounts mandated under various statutes and regulatory requirements.
 

The central bank had in its August monetary policy said no bank can open current account for a customer who has availed cash credit or overdraft facility from others in the banking system, and from now on, all transactions will now have to be routed through the cash credit, or overdraft account.
 

The norms were supposed to be operational from November 5, but the RBI had deferred it till December 15, pending some clarification and a section of frequently asked question.
 

Spelling out some of the exceptions, the RBI said on its statement that accounts for real estate projects for the purpose of maintaining 70 per cent of advance payments collected from the home buyers, can be maintained in separate banks.
 

Nodal or escrow accounts of payment aggregators/prepaid payment instrument issuers for specific activities as permitted under Payment and Settlement Systems Act, accounts for settlement of dues related to debit card/ATM card/credit card issuers/acquirers, accounts of White Label ATM Operators and their agents for sourcing of currency, and accounts permitted under FEMA will be allowed as exceptions.
 

Similarly, accounts for the purpose of initial public offering, or new fund offer, share buyback, dividend payment, issuance of commercial papers, allotment of debentures or gratuity have been exempted from the circular.