RBI bars banks from opening current accounts for customers having availed cash credit or overdraft facilities

The Reserve Bank of India has barred banks from opening current accounts for customers who have availed cash credit or overdraft facilities, with a view to improve credit discipline. In a notification, the Central Bank said, rather than opening a new current account, all transactions should be routed through a Cash Credit or OverDraft account. The RBI stated that there is a need for discipline by the banks in opening current accounts.   RBI Governor Shaktikanta Das said it is necessary to take a...