Attention ! Your business current account may be freezed on 31st October by your bank

Sounds absurd ! It is true !!

In order to enforce financial discipline among bank borrowers , Reserve Bank of India has issued guidelines to close the current accounts of all those borrowers who are availing bank loans/limits from other banks. RBI’s directive on opening a current account was announced last year and was to be implemented by January 31 this year. However, with banks dragging their feet, RBI has imposed 31 October 2021 as final deadline to close multiple current accounts.

The new RBI rule for current accounts holders

In terms of RBI new rules, a borrower can have a current account with only that bank which accounts for at least 10% of their total borrowing. Small businessmen who use one bank to borrow and another for transactions will no longer be able to do so. However , large companies who have their borrowing spread across multiple banks are outside the preview of this new RBI rule.

What should be done to avoid bank freeze?

One should immediately approach to his/her borrowing bank and seek written consent to operate bank account with other bank, citing the reasons. If the bank refuses the genuine request of the borrower , immediately report/tweet to higher bank authorities and RBI as well !

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