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Banks to suspend 2600 current accounts on the direction of RBI

Banks have through a Reserve Bank of India Circular decided to suspend 2600 currents accounts, leading to an unexpected situation for their account holders. Those who had a CC account in one bank and a current account, under the same name, in another bank, their current account will be suspended.

It has been brought to the notice that many people take loan from a bank through a Cash-Credit Account (CC A/C) or Overdraft Account (OD A/C) and also open a current account under the same name in another bank. This enables them to perform their transactions through the current account and keep the CC/OD account idle which leads to it becoming an NPA.

To prevent the rising number of NPA accounts, the Central Bank (RBI) has directed the banks to keep a track of CC account holders having a current account in another bank to perform transactions.

RBI-2020-21-62-DOR. No. BP.BC.27-21.04
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