{"id":4407,"date":"2021-09-07T13:24:39","date_gmt":"2021-09-07T07:54:39","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=4407"},"modified":"2021-09-07T13:24:40","modified_gmt":"2021-09-07T07:54:40","slug":"rbi-circular-for-current-accounts-to-exempt-government-accounts","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/rbi-circular-for-current-accounts-to-exempt-government-accounts\/","title":{"rendered":"RBI Circular for Current Accounts To Exempt Government Accounts?"},"content":{"rendered":"\n<p>Indian Banks\u2019 Association (IBA) has requested the RBI to exclude government accounts maintained with several <a href=\"https:\/\/blog.tickertape.in\/all-you-need-to-know-about-the-mega-merger-of-psbs\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">banks<\/a> from the current accounts circular dated 6th August 2020. The banker reasoned that the circular\u2019s purpose is to combat fraud by preventing siphoning off funds given by banks. And so, the government cannot be considered to be at risk.<\/p>\n\n\n\n<p>The request comes after the criticism from IBA member banks. If the RBI nods, a bank will not be required to close their current accounts held by the government, even if their exposure to such current accounts is less than 10% of the governments\u2019 total borrowings. The deadline to comply with the circular has been extended from 31<sup>st<\/sup> July 2021 to 31<sup>st<\/sup> October 2021.<\/p>\n\n\n\n<p>It has been reported that the government was upset with the likelihood of having to close some of its current accounts as they had violated the requirements of the circular dated 6 August. Policymakers also threatened to blacklist some banks.<\/p>\n\n\n\n<p>Banks have requested the RBI to remove government accounts from the circular\u2019s scope entirely to reconcile the discrepancy between the mandate and the government\u2019s intentions.<\/p>\n\n\n\n<p>While such challenges hinder the implementation of the circular, the <a href=\"https:\/\/www.tickertape.in\/blog\/rbi-new-mandate\/?utm_source=blog&amp;utm_medium=article\">RBI<\/a> has asserted to escalate the issues that banks are not able to resolve by themselves to the Indian Banks\u2019 Association for help. This has comforted banks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian Banks\u2019 Association has requested the RBI to exclude government current accounts from circular dated 6th August 2020.<\/p>\n","protected":false},"author":27,"featured_media":4408,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[359,720,51],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/Informative-2-1-1.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4407"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=4407"}],"version-history":[{"count":1,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4407\/revisions"}],"predecessor-version":[{"id":4409,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4407\/revisions\/4409"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4408"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=4407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=4407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=4407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}