The Canary Chamber of Commerce (KCCI) has asked the Association of Indian Banks (IBA) to inform its member banks to allow small and medium-sized enterprises (micro, small and medium-sized enterprises) to open multiple current accounts in the same bank and allow the opening of a collection account. with other banks according to the RBI notification.
In a letter to the IBA Executive Director, KCCI President Isaac Vas said that from August 6, 2020, the RBI introduced certain restrictions on opening bank accounts in several banks in order to prevent the diversion of funds.
Stating that the RBI’s move is in the wider interest of the country, he said that various banks went beyond the RBI’s orders and introduced more restrictions. “These restrictions are generally considered unjustified and are contrary to the spirit of providing quality services to the business community and hinder uninterrupted business. “Some banks are abruptly closing their current accounts without any warning,” he said.
Citing complaints received from KCCI members, he said that some banks do not allow companies to have a current account and an overdraft account in the same branch. Many companies have opened separate current accounts to raise funds from their clients, he said, adding that banks have a mandate to close any of their accounts.
He also said that some business units have branches in multiple locations and keep separate current accounts in their branches. He told you that banks do not allow them to have multiple current accounts in different cities.
Allegation of unfair commercial practice
You were quoted by the RBI notice stating that if the sanctioned loan amount is less than ₹ 50 crore, the owners can open accounts for collection in other banks. “In several cases, we have noticed that the limits on credit sanctions have been reduced to less than 50 kroner, just to meet this requirement,” he said, adding that banks have kept the limit of sanctions above 50 kroner, thus adopting unfair trading practices.
He added that it is customary for MSMEs to keep a special current account for online payments to ensure security and prevent misuse of funds. Therefore, a separate current account must be allowed for MSMEs that cannot maintain a centralized single overdraft account, he said.
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