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Current Affairs - 2019
Who proposed strict rules on opening and running of current accounts of corporate borrowers in order to tackle fund diversion?
Dena Bank
Canara Bank
Reserve Bank of India
State Bank of India

Correct Answer : Option (C) - Reserve Bank of India

According to a report by The Economic Times, India's Central Bank, the Reserve Bank of India (RBI) would tighten rules on opening and operating current accounts of corporate borrowers to prevent the diversion of funds. sRBI had notified that the banks with collection accounts will have to transfer funds to the current account and the current accounts could be opened only with the lead bank of a lending association. The rules would be applicable to corporates who have borrowed and used credit facilities of more than Rs 50 crore from the banking system.

Published On : July 12, 2021