Industry body Confederation of Indian Industry has urged the Reserve Bank of India to reconsider its circular regarding opening of current accounts saying that the guidelines are likely to disrupt the servicing of clients by banks leading to inefficiencies and delays.
The RBI on Aug. 6 issued a circular imposing restrictions on opening of multiple current accounts by borrowers. “While the guidelines announced by RBI are of appropriate intent, they are likely to disrupt the ongoing servicing of clients by Banks/ NBFCs/ HFCs and is expected to lead to a manifold increase in operational workflows, inefficiencies, delays, inconveniences and costs for delivery of products and services to clients in addition to potential operational risk issues”, the CII said in a statement.
Among other things, the CII has suggested exclusion of certain categories of borrowers (other regulated entities like…