Reserve Bank of India (RBI) has extended the deadline for implementation of its guidelines on current account opening by banks to October 31 from July 31 heeding to requests by banks.
“Banks will be permitted time till October 31, 2021 to implement the provisions of the circular. This extended time line shall be utilised by banks to engage with their borrowers to arrive at mutually satisfactory resolutions within the ambit of the circular. Such issues which banks are unable to resolve themselves shall be escalated to Indian Banks’ Association (IBA) for appropriate guidance. Residual issues, if any, requiring regulatory consideration shall be flagged by IBA to the Reserve Bank for examination by September 30, 2021,” RBI said.
Reserve Bank of India issued guidelines for implementation of the circular on the opening of current accounts by banks
RBI has given banks time until October end to implement the new rules on current accounts issued in 2020. The regulator had previously set a deadline of 31 July pic.twitter.com/ZLqtdMqgz9
— ANI (@ANI) August 4, 2021
In a notification on its website, the central bank has said that the instructions were issued in order to enforce credit discipline amongst the borrowers as well as to facilitate better monitoring by the lenders, and for this purpose, a graded approach had been prescribed on opening and operating of current accounts and CC/OD facilities. Banks were required to implement these instructions in a non-disruptive manner while keeping the bonafide business requirements of the borrowers in mind.
It has also exempted cash replenishment agencies from the guidelines along with white label ATM companies.