A sole proprietary concern opener a current account with a bank back in 2015. Also, the sole proprietor in 2019 bought a commercial shop on his individual name through a OD Loan against property product offered by the bank.
Now, bank had frozen the current account citing circular DOR.No.BP.BC/7/21.04.048/2020-21 dated August 6, 2020 and the subsequent circulars specifically Dec 2020.
Is there a way to continue using current account as well as ODLAP account.
The EMI is debited in the current account.
The Current account is in the name of M/s Sagar Enterprise
whereas
The ODLAP account is in the name og Mr. Sagar Patel
*name changed where applicable.
No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account.
Sry to hear that. Banking systems did not improve yet. The name cannot be such a big issue RBI is protecting itself from further fraud like they incurred previously amounting to 4000 crores.
this is called hoowinking according to this article: https://www.livemint.com/industry/banking/banks-will-not-open-current-accounts-for-those-with-cash-credit-overdraft-H T M L
CAclubindia
