The Reserve Bank of India (RBI) has permitted banks to open specific accounts relating to real estate projects, capital market transactions, and White Label ATM Operators and their agents for sourcing of currency, among others, which are stipulated under the various statutes and instructions of other regulators/ regulatory departments.
The opening of current accounts by the aforementioned entities is without any restrictions placed in terms of RBI’s August 6 circular on ‘Opening of Current Accounts by Banks – Need for Discipline’.
The central bank said the permission is subject to the condition that banks ensure that these accounts are used for permitted/specified transactions only. Further, banks shall flag these accounts in the CBS (core banking solution) for easy monitoring.
Lenders to such borrowers may also enter into agreements/arrangements with the borrowers for monitoring of cash flows/periodic transfer of funds (if permissible) in these current accounts.
Banks shall monitor all current accounts and CC/ODs regularly, at least on a half-yearly basis, specifically with respect to the exposure of the banking system to the borrower.
So, accounts for real estate projects mandated under the Real Estate (Regulation and Development) Act, 2016, for the purpose of maintaining 70 per cent of advance payments collected from the home buyers can be opened without any restrictions.
Nodal or escrow accounts of payment aggregators/ prepaid payment instrument issuers for specific activities as permitted by Rthe BI under Payment and Settlement Systems Act, 2007 can be opened by banks.
Banks can open accounts without any restrictions for settlement of dues related to debit card/ ATM card/ credit card issuers/ acquirers and those permitted under FEMA (Foreign Exchange Management Act), 1999.
Accounts for the purpose of IPO (initial public offer)/ NFO (new fund offer) / FPO (follow-on public offer)/ share buyback /dividend payment / issuance of commercial papers/allotment of debentures/gratuity, which are mandated by respective statutes or regulators and are meant for specific/limited transactions only can be opened by banks without any restrictions imposed by the August 6 circular.
The central bank said banks can open accounts for payment of taxes, duties, statutory dues, opened with banks authorised to collect the same, for borrowers of such banks which are not authorized to collect such taxes, duties, statutory dues.
Further, banks can open accounts of White Label ATM Operators and their agents for sourcing of currency without any restrictions placed in terms of the August 6 circular.