Following the instructions of the Reserve Bank of India (RBI), banks have closed millions of current accounts. With this decision by the bank, millions of MSMEs across the country are facing problems. However, this decision did not affect large companies because they have accounts in many banks.
Notably, the Reserve Bank of India (RBI) in August last year implemented some security measures to open the current accounts of banks. Broadly speaking, these rules state that banks cannot open current accounts to creditors, where the total amount of credit to those exposed to the banking system is less than 10 percent.
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The RBI had previously told banks to comply with the circular in three months, but regulators extended the deadline until July 31 after banks expressed their inability. Now, since August 1, banks have begun to close or shut down accounts to comply with RBI rules. Most of the current account holders are entrepreneurs and entrepreneurs.
Anger on social media
Many such borrowers took to social media to express their anger and sought government intervention to stop these disruptions. At the same time, an official said that the number of current accounts that need to be closed to comply with RBI rules is in lakhs. Banks have a list of these accounts. So we are studying it and closing the accounts one by one.