What changed
RBI issued a clarification dated September 23, 2004 that its instructions supersede the circular dated December 9, 1986.
What it means for you
Banks must now adhere to the instructions in the September 23, 2004 circular for current account openings.
What you must do
- Ensure your bank's current account opening procedures align with the August 4, 2004 circular, not the 1986 one.
- Update internal policy documents and training materials to reflect the supersession of the old circular.
- Review current account portfolios to verify compliance with the new discipline requirements.
- Communicate the change to relevant branches and compliance teams to avoid using outdated guidelines.
Who it affects
All scheduled commercial banks (excluding RRBs)
Does this circular apply to Regional Rural Banks?
No, the circular explicitly excludes RRBs from its scope.
What happens if we still follow the 1986 circular?
The 1986 circular is superseded, so following it would mean non-compliance with RBI's current instructions. Banks must adopt the August 2004 guidelines.