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.
Comments