A new regulatory compliance being circulated by the axis bank, any company enjoys any credit limit ( CC or Cash limit), it has to be in the same bank. The circular further says, if any enterprise is having multiple limit accounts( one or above one) in the multiple bank, they have to bring down to single bank, that to they have to follow the guiding principle of the bank.
Every company has to produce customer declaration for not availed credit facilities in the form of CC/OD from the banking system. A letter from Axis bank says, Our Bank holds a portfolio of business entities having a Current Account and enjoying a Cash Credit (CC) & Overdraft (OD) facility with us. We invite reference to the revision in guidelines issued by Reserve Bank of India vide Circular No. DOR.No.BP.BC/7/21.04.048/2020-21 dated August 06, 2020 on “Opening of Current Accounts by Banks – Need for Discipline”.
As per the guidelines, no bank shall open Current Accounts for customers who have availed credit facilities in the form of CC/OD from the banking system and all transactions shall be routed through the CC/OD account. Accordingly, customers availing CC/OD facility cannot continue with the Current Account and all such accounts shall be closed. In this context, there have been requests from the customers to allow them to retain their existing current account number as they have submitted the account number to various Government and Statutory authorities for the purpose of Direct and Indirect Tax filings as well as have standing instructions for various payments. Hence it is proposed to offer the following product proposition to such customers