In August last year, the RBI-Reserve Bank of India had issued new rules for opening accounts. That is why banks have closed the bank accounts of those who do not follow the rules.
Current account is a bank account for the people running the business. It gives the convenience of doing everyday business transactions. The money lying in the current account can be withdrawn at any time from the bank branch or ATM. There is no restriction of any kind in it. Account holders can withdraw and deposit money as many times as they want. That is, in the current account, you can do as many transactions as you want in a day. In the savings bank account where you get interest on the balance. At the same time, no interest is available on the current account balance. You can use Voter ID Card, Photo, Aadhar Card, PAN Card, Driving License and Passport to open a current account. Let us now know why banks have closed current bank accounts …
According to the news published in the English newspaper Economic Times, the private and government banks of the country have closed lakhs of current accounts, which is causing problems to many small businessmen. SBI has closed 60,000 accounts in the last few months. Banks have closed these accounts on a directive of RBI, whose deadline has expired. According to this, banks cannot open current accounts of customers who have taken loans from other banks. Now know what are the rules of RBI..
It has been told in media reports that banks have informed customers about this through emails and messages. We advise you to maintain your Cash Credit / Overdraft account in our branch as per RBI instructions but your current account will have to be closed. It cannot be maintained while availing the facility of Cash Credit/ Overdraft Account. You are requested to make arrangements to close your current account within 30 days.
The purpose of this rule is to keep a watch on the cash flow and check the misappropriation of funds. RBI found that despite the existing guidelines and provisions of penalty, many borrowers were misappropriating funds by opening current accounts in banks. The purpose of the new rule is clear but the customers have been inconvenienced a lot. A senior official of a state-run bank told ET that thousands of accounts have been forced to close. If all the banks are talked about, then this number can be in lakhs. This is a challenging task.
Customers have expressed their concerns on the Twitter handle of the banks. Many customers have lodged their complaint with the Finance Minister and asked to take immediate action on it. In the RBI circular, companies have been asked to maintain only one single account with OD facility.
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