Banks Freeze Current Accounts

Banks Freeze Current Accounts

We might recall that Reserve bank of India had issued instructions that entities holding a Cash Credit or Overdraft accounts should not simultaneously be permitted to have a Current Account also which paves way for diversion of funds.  The deadline for compliance was till July 2021 for due compliance and this compelled the banks to close the current account of the customers, who were enjoying either a Cash Credit or an Overdraft facility from a bank.

Here is an article from Business Lines which elaborates the ordeals faced by small businessmen and the current compliance status.

Small business hit

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