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RBI eases some conditions for banks to open current accounts

RBI eases some conditions for banks to open current accounts SECTIONS Share Synopsis In August, RBI had said that banks that do not have cash credit or overdraft (CC/OD) facilities cannot open a current account for any borrower. Further, if a bank has an exposure of less than 10% of loans of the banking system to a borrower, all debits to their accounts can only be routed through a bank which has 10% or more of the loan exposure. Agencies In the latest circular RBI said the exemptions are subject to the condition that the banks shall ensure that these accounts are used for permitted/specified transactions only.

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