Current accounts new rules: RBI extends deadline for implementation of new rules for current accounts

Mumbai : The Reserve Bank of India (RBI) has extended the deadline for banks to implement the new rules for current accounts till October 31. This decision has been taken after various reports related to the impact of the closure of current accounts of small traders on their business in the last few days.

The RBI said the new rules for current accounts are aimed at instituting credit discipline among borrowers as well as facilitating better monitoring of banks. It, however, asked banks to take a cautious approach in the matter of new current accounts and cash credit/overdraft CC/OD facilities.

RBI said that banks were required to implement these directions without any hindrance keeping in mind the genuine business requirements of the borrowers. He said that in the last few days, he has received complaints from small traders about the closure of their accounts by the bank.

The central bank said it has received requests from banks for some more time to resolve issues related to the implementation of the new rules. Due to which the deadline for implementing the rules has been extended to October 31, 2021.