RBI has solved the biggest puzzle of the banking system – now the lives of UAE NRIs are going to change. Which bank will operate your account, how quickly will you get the money and will your cash credit line run faster than before? The answer lies in the new rules.”
New Delhi. The banking system in India is always changing so that the problems of the customers are reduced and the facilities are increased. In this series, the Reserve Bank of India (RBI) has made major changes regarding current account, overdraft (OD), and cash credit (CC) account. These changes will be especially helpful for thousands of NRIs living in UAE, who manage their business and financial responsibilities in India while living abroad. Many NRIs were facing banking delays, lack of fund access and account operation problems for a long time. Now RBI has made the system flexible and fast for them.
What has changed and why?
Imagine, you are sitting in UAE but your business is running in India. Payment is delayed, bank stops fund transfer or one is unable to use the account – it is natural to feel irritated. Understanding this problem, RBI has removed many strict banking rules and implemented some new easy rules. These changes may sound technical, but they will have a direct impact on the daily financial life of every NRI.
What has changed and how will you benefit from it?
Let us understand its five main benefits in simple language:-
1. Now more banks will be able to operate your current and overdraft accounts!
Earlier the rules were very strict. If your loan is Rs 10 crore or more, then only limited banks could operate your current or OD account. This caused a lot of problems to NRI businesses. Now RBI has relaxed these rules:
- Any bank which has 10% or more share in your total loan can operate your current or OD account.
- If no bank touches 10%, the top two lenders will handle the account.
Benefits for UAE NRIs:
- Increase in payment and cash flow
- Compliance is easy due to collaboration of many banks
- Help in running your business smoothly
2. Cash Credit (CC) rules become very easy
Earlier there were many restrictions on CC accounts. Due to this there was difficulty in running working capital. Now RBI has removed all restrictions from CC account. What is the benefit of this?
- Vendor payments clear faster
- Easy daily business transactions
- Ease of meeting sudden cash needs
3. Access to money now faster – two-day rule continues
Many banks wanted to extend the time limit for transferring money from collection account to main account. But RBI has clearly said that the money should reach the main account from the collection account within 2 working days.
Why is this important?
- Easy to control cash flow even while sitting in UAE
- The problem of stagnation of money ends
- Better business planning and payment schedule
4. If a bank is not eligible – clear and transparent rules
Earlier this process was very complicated. Now RBI made direct rules:
- The bank will have to give notice to the customer within a month
- Customer will have 2 months to close or change account
- The order of the court or agency will be considered above the rules of RBI.
Benefit?
- Everything is transparent even from abroad
- No fear of sudden account closure
5. Monitoring will remain strict – security will increase
- RBI clearly refused that surveillance will not be reduced.
- Banks must:
- account monitoring
- Stopping wrong transactions
- Blocking illegal third-party transactions
- This will make the system more secure.
- No special exemption to any sector or bank!
Many institutions asked for exemption, but RBI refused. This framework will be equal for everyone.
What can NRIs living in UAE expect?
- More flexibility in banking
- Fast cash flow for business
- Payment and collection process simple
- Transparency in the entire banking system
- Strong protection against erroneous transactions
This new framework of RBI will make life easier especially for NRIs in UAE. Now business operation, payment management and banking control will be much smoother. These changes don’t just change banking – they provide security, convenience and confidence to Indians living abroad.