Bank Account Closed: RBI had issued a circular in August 2020. The deadline was extended then but finally culminated on July 31, 2021.
Has your bank account closed? You need to check whether your bank’s current account is closed or not. Several current accounts have been closed as account holders failed to comply with the RBI directive. Customers have received emails regarding the development from their respective banks, as per media reports.
Bank Account Closed: All You Need To Know
1. Banks have cited in the email the RBI norm that does not allow banks to open such accounts for customers who have borrowed loans from other lenders.
2. RBI had issued a circular in August 2020. The deadline was extended then but finally culminated on July 31, 2021.
3. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account, RBI said in the circular.
4. Banks must monitor all current accounts and CC/ODs regularly, at least on a quarterly basis, specifically with respect to the exposure of the banking system to the borrower, to ensure compliance with these instructions, India’s central bank said.