The Reserve Bank of India (RBI) has introduced new guidelines and restrictions on opening of present account for loan-taking firms on Thursday. According to the new guidelines, firms must open their present account or overdraft account within the financial institution from which they’re taking loans. With this, Lender Banks will have full details about the corporate’s money stream. At the identical time, the RBI has additionally requested banks not to make use of the present account to present loans. Instead, banks pay on to the corporate offering the products and companies to the borrower. This will stop the misappropriation of mortgage quantity.
why did RBI take this resolution
With the assistance of this resolution, the RBI desires to cease the misappropriation of the quantity taken as mortgage. Till now most of the borrowing firms take loans from public sector banks, however for day by day wants open the present account in a international or non-public financial institution. Actually, these banks provide higher money administration to their clients. Most international and personal medium firms do not give large loans, however all banks need firms to open their present accounts with them.
For now, it’s too early to say who will profit from the new guidelines and who will be harmed. It can’t be mentioned at current whether or not the quantity of present accounts of non-public banks like HDFC, ICICI and Axis Bank will enhance in authorities banks by decreasing or it will be with international banks. According to the new guidelines, banks can’t open a present account of debtors who’ve a money credit score account in one other financial institution. According to the report, if a shopper does not have a money credit score account in any financial institution, then they fall into three classes.
- The shopper has taken lower than Rs 5 crore mortgage from banks. Any financial institution of such firms can open a present account.
- Current accounts of customers taking loans starting from 5 to 50 crores from banking system might be opened solely within the lender financial institution. Non-lending banks can open solely assortment accounts of such firms, ie solely cash can are available them. This cash will must be paid within the money credit score account of the lending financial institution. The financial institution does not get any profit on the gathering account.
- A lender of an organization borrowing greater than Rs 50 crore from the banking system will must open an escrow account within the financial institution and the identical financial institution can even open a present account. Other financial institution assortment accounts of such firm might be opened.
According to the bankers, it’s not but clear the way it will be implemented. Also, there’s a query as to how these guidelines will be monitored. However, he says that the most important profit of the new guidelines and restrictions will be obtainable solely to public sector banks.