RBI eases some conditions for banks to open current accounts

 
The Reserve Bank of India (RBI) has exempted some services such as advance payments for home purchases, IPO and FPO applications and accounts used for settlement of credit, debit or ATM dues from the restrictions on opening current accounts without much lending exposure. In a notification on its website, the central bank mentioned eight specific services which have been exempt from its circular in August. Besides the three mentioned above, escrow accounts of payment aggregators or pre paid payment companies, payment settlement accounts, current accounts permitted under the Foreign Exchange Management Act (FEMA), accounts used for payment of taxes, duties a d statutory dues and accounts of white label ATM operators and their agents for sourcing currency have also been exempt from the RBI regulations.

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