RBI Extends Deadline for Banks' Compliance with New Guidelines for Existing Current Accounts
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The Reserve Bank of India on Monday extended the deadline for banks 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 banks regarding implementation of the guidelines for existing current account. The banks will have time till December 15 to ensure compliance in this regard, according to the RBI. In August, the RBI 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 RBI 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 compliance 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.