India – Opening Of Current Accounts By Banks- Need For Discipline.

Pursuant to thecircular dated May 15, 2004, the Reserve Bank of India (RBI) had directed banks to seek a no-objection certificate (NOC) from existing banks prior to opening a current account for entities that seek credit facilities.Pursuant to the circular dated July 2, 2015, the RBI has also directed banks to use the information available on the Central Repository of Information on Large Credits (CRILC)and not limit their due diligence to seeking an NOC. The CRILC has been established under the pursuant to the RBI's "Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy" issued on January 30, 2014, RBI to collect, store, and disseminate data on credit exposures.

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