Solution

Opening of Current Accounts for borrowers availing Cash Credit/ Overdraft Facilities from the Banking System For borrowers, where the aggregate exposureof the banking system is less than ₹5 crore, banks can open current accounts without any restrictions, subject to obtaining an undertaking from such customers that they (the borrowers) shall inform the bank(s), if and when the credit facilities availed by them from the banking system becomes ₹5 crore or more. Where the aggregate exposure of the banking system is ₹5 crore or more: Borrowers can open current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10 percent of the aggregate exposure of the banking system to that borrower. In case none of the lenders has at least 10 percent of the aggregate exposure, the bank having the highest exposure among CC/OD providing banks may open current accounts.