Banking · Current Account Opening Norms
Consider the following statements regarding RBI guidelines on the opening of Current Accounts for borrowers who have availed credit facilities: Statement I: For borrowers where the total exposure of the banking system is less than ₹5 crore, banks can open current accounts subject to obtaining an undertaking regarding exposure changes. Statement II: Where the total exposure is ₹50 crore or more, an Escrow mechanism is mandatory and only the Escrow managing bank can open a current account. Statement III: Any bank can open a collection account for a borrower with exposure above ₹5 crore provided funds are daily swept into the lending bank's current account. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and III✓
- 2Only II and III
- 3Only I and II
- 4Only I
Correct answer
I, II and III
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