RBI issues Fresh Guidelines for Current Accounts

The Reserve Bank of India, to stop the misuse of funds, has abstained the banks from rerouting the money from the term loans of the borrowers through their current accounts. It is a common practice among the borrowers to divert the funds. The bank has also reviewed and issued new guidelines for the opening of Current accounts to instill discipline among the borrowers.

The banks have been instructed not to open current accounts for the people who have availed credit facilities through Cash Credit or Overdraft. All transactions should be routed through the Cash Credit or Overdraft account. The new rules are set to apply for all existing cash credit and overdraft accounts with the various banks.

The RBI has clearly stated that since term loans are taken for specific purposes, they will be transferred directly to the supplier of goods and services. The financial analysts have said that the RBI has made this move to prevent the misuse of funds by the corporates and promoters due to the proposed one-time loan recast scheme.

The RBI has stated in the circular that debit to the borrower’s CC/OD account should only take place for the credit to the CC/OD of the borrower with a bank with 10% or more loans of the banking system belonging to the borrower. For most corporates, the loans are issued by the PSU banks, and the current accounts are maintained at the private banks. The RBI expects

that this practice will come to an end now. The public sector banks that have allowed credit and overdraft will now manage the current accounts too.

In a further statement, the RBI has clarified that for customers who have not availed CC/OD facility from any bank, the bank can open a current account for him/her. For the borrowers with loans over Rs 50 crore, the bank must put an escrow mechanism in place. The current account of such customers can only be opened by the bank that manages the escrow.

0x: The Infrastructure for the Emerging Crypto Economy

The crypto market has recently witnessed a steady growth in the crypto economy and that has been solely because of the decentralization system. It is considered as the key to bringing a rise in the cryptocurrencies. Being secure, private and transparent, resistant, decentralized exchanges have been making a mark ahead of centralized correspondents. This system of economy has the potential to discard economic vulnerability at any given point and return market power to individuals.

Decentralized exchanges enable peer-to-peer trading of cryptocurrencies, which has given a boost to many such P2P trading platforms. One of such decentralized Exchange Protocol is 0x.  0x is an open protocol that allows the peer-to-peer exchange of assets on Ethereum blockchain. 0x protocol can be widely used for a variety of markets ranging from gaming items to financial instruments. 

The blockchain system has been groundbreaking ever since it came into existence. There are hundreds of blockchain-based assets that have been built by allowing anyone to own and transfer assets across an open financial network without the interference of the third party. 

0x aims to make the world a place where all forms of values are tokenized on a public blockchain. With a set of the traditional financial system 0x aims to build a globally efficient financial system, which is more transparent and rightful than any other existing system. The new infrastructure will be free to use and run on open source code which will clear all layers of middlemen and provide users with greater financial supremacy. 

0x believes that public blockchain platforms have the potential to be a formidable equalizing entity for the world. Tokenisation of more assets and moving them into blockchain rails gives the public blockchain a vast chance of democratizing access to financial service in the same way as the internet has democratized access to information.   

0x has recently introduced 0x Application Program Interface (API). 0x API  provides DEX liquidity through one API, allowing its users to combine with 0x API to accumulate liquidity from 0x Mesh, Kyber, Uniswap, and more swap tokens at the best price. The 0x HTTP API is the simplest way to root liquidity from 0x Mesh, Kyber, Uniswap as well as Oasis and other decentralized exchange networks. 

API Swap enables the users to preoccupy liquidity at the best price from 0x Mesh and the decentralized exchange ecosystem via ERC20BridgePr0xy. 0x makes use of smart order routing to split the transactions made by the users across the decentralized exchange network. 

With its innovative P2P platform and cutting-edge technologies, 0x is rapidly growing as a leader in pushing the boundaries of decentralized exchanges beyond limits. It can be rightly attributed as the perfect infrastructure accelerating the adoption of decentralized technology.