The Reserve Bank of India (RBI) has set some new conditions for the banks to open new current accounts for large borrowers with a view to enhancing credit discipline.
These conditions are for customers who have availed cash credit or overdraft facilities.
Read on to find out more about the new conditions and the reason behind the move…
RBI’s Step Towards Secure Banking!
The RBI governor, Shaktikanta Das in a statement on Developmental and Regulatory Policies on August 6 said that multiple operating accounts used by large borrowers- both current and cash/overdraft accounts- have been observed to be prone to violate the credit discipline.
In a notification, the RBI said that rather than opening a new current account, all transactions should be made through a cash credit (CC) or overdraft (OD) account.
This move will avoid hoodwinking the system and reduce the blind spots thus protecting the depositor’s money, said the officials with knowledge in the matter.
The central bank also said that the revised norms will likely bring in the requisite discipline in collective actions by creditors for speedier resolution of stress in the accounts of borrowers.
It added, “Banks should not route withdrawal from term loans through current accounts. Since term loans are meant for specific purposes, the funds should be remitted directly to the supplier of goods and services. Expenses incurred by the borrower for day to day operations should be routed through CC/ OD account if the borrower has CC/ OD account, else through a current account.”
The Reason Behind This Move?
The RBI hasn’t stated the reason behind this move. However, it can be linked to the Rs 4000 crore PMC cooperative bank scam wherein multiple accounts were opened.
A customer can open multiple accounts there is no monitoring of funds. Also, the same customer can withdraw a huge amount from the same bank from different accounts, which can possibly lead to fraud cases and scams.
The customer can take part in a vicious circle, wherein he uses the money to pay the first credit facility which can lead to a wider concern.
The policy is surely a step towards preventing huge bank scams we have witnessed in the past years!
A man in New Zealand finds insects in his Domino’s pizza
A man in West Auckland, New Zealand says he was left feeling sick after allegedly discovering maggots (insects larva) on his takeaway pizza order from Domino’s. However, the Domino’s Pizza outlet where Reginald Thalari says he bought the pizza denied the claim.
On Tuesday afternoon, Thalari purchased four pizzas from Domino’s Pizza outlet in Avondale for his employees. But it was after they had eaten a few slices that Thalari alleges they made a stomach-churning discovery.
“It was disgusting. We ordered four pizzas but when we opened the box with pepperoni we saw maggots on the ham. I felt like spewing, to be honest. If someone says would you like some pizza I think I’ll turn them down next time.”
However, a Domino’s spokesperson said that it is extremely unlikely maggots would have been in store pre-purchase and said it would be “impossible” for eggs to survive the temperature of their ovens.
“Domino’s takes food health and safety extremely seriously, and ensures these standards are upheld through regular audits and inspections of stores throughout the year,” the spokesperson said.
The Domino’s Pizza spokeswoman further said that “Upon learning of this customer’s experience, we contacted the customer directly and have organised a deep clean of the store, as well as for our pest control company to further inspect,”
Singer Shobhit Sahay won hearts with his song ‘Mehrbaan Alvida’
Music can evoke many emotions in you. Songs help you express feelings for which you can’t find words. Singers play a key role in giving that effect to a song with their beautiful voices. In a country like India, many young singers are leaving people impressed with their impeccable talent. Shobhit Sahay from Muzaffarpur is one such talented singer/vocalist who is here to rule hearts.
Currently, Shobhit Sahay is grabbing headlines and making people fall in love with his song ‘Mehrbaan Alvida’. His melodious voice has elevated the song’s mood along with the catchy music. The song is trending on the internet and has crossed more than 100K views recently. Shobhit is over the moon with such a positive response to his latest release.
Along with being a good singer, Shobhit Sahay is also popular among the netizens as a social media influencer. Shobhit has thousands of followers on his Instagram account, where he shares videos covering various tracks. A few months ago, legendary singer Stebin Ben praised Shobhit for his amazing vocal skills. Shobhit also runs a YouTube channel where people can’t get enough of his talent and music skills.
Shobhit shares about his journey and love for music, “I have been into music since childhood. I used to listen to singers like Arijit Singh, Stebin Ben, Jubin Nautiyal and others. They captivate your mind with their soulful voice. They made me believe in my dreams and I am happy that people enjoy my work, especially my latest songs. I hope I keep making more original songs and people keep showering me with such good love.”
Thanks to the success of Mehrbaan Alvida, singer Shobhit Sahay has got the attention of many top Bollywood composers. Currently, various music composers have approached his to sing either for a movie or web show. Shobhit is excited about the way his singing career is shaping. Soon, he will announce his new project on social media.
About the enormous love and appreciation she receives on social media, the singer expresses, “I am incredibly amazed by the support and fondness of my Instagram followers. Their constant comments, appreciation, likes, and sharing of my content is what made me so strong in the world of social media. Deeply overwhelmed with the response. I hope I keep giving my best and make my followers and music lovers happy.”
Top military officer of India, CDS General Bipin Rawat passed away in chopper crash
General (retd) Bipin Rawat, India’s first Chief of Defence Staff General, passed away on Wednesday when an Indian Air Force helicopter ferrying him and 13 others crashed near Coonoor in Tamil Nadu, the Indian Air Force said.
The crash took place as Rawat was on his way to the Defence Services Staff College in Wellington. It is being speculated that the crash took place due to low visibility in foggy conditions.
“With deep regret, it has now been ascertained that Gen Bipin Rawat, Mrs Madhulika Rawat and 11 other persons on board have died in the unfortunate accident,” the Indian Air Force (IAF) said in a Twitter post late Wednesday.
“Gen Bipin Rawat, Chief of Defence Staff (CDS) was on a visit to Defence Services Staff College, Wellington (Nilgiri Hills) to address the faculty and student officers of the Staff Course today,” the IAF said in a second post.
Rawat, a former Indian army chief, took office as the first CDS on 1 January 2020 at the start of a three-year term. He was the one point defence advisor to the Defence Minister. He was also entrusted with carrying out some of the country’s key defence reforms – creating synergy among the three services by merging their 17 different commands into four or five joint commands. The new commands were to focus on specific borders.