Bank Account Governance & RBI Screener
Screen corporate Current Account opening eligibility under the RBI August 2020 / 2021 / 2022 aggregate credit exposure thresholds (< ₹5 Cr, ₹5 Cr–₹50 Cr, and ≥ ₹50 Cr Escrow), select optimal cross-border FEMA accounts (NRE vs NRO vs FCNR(B) vs RFC vs EEFC), evaluate signatory operating mandates (Either or Survivor, Former or Survivor, Karta, Maker-Checker), and audit Supreme Court Ram Chander Talwar nomination vs succession estate protections. All diagnostic computations execute client-side under the Digital Personal Data Protection Act, 2023.
Banking & Mandate Parameters
Governs statutory signing powers & enabling resolutions
Triggers RBI August 2020 / 2021 Current Account restrictions
Determines whether operational current account or collection account
Selects optimal domestic, FEMA, or statutory escrow vehicle
Determines optimal operational mandate (E or S, F or S, Maker-Checker)
Applies sovereign statutory withdrawal & CA certification rules
Banking Diagnostics
RBI & FEMA ScreenerStandard Current Account Permitted
Borrower maintains zero or sub-₹5 Crore banking exposure. Any scheduled commercial bank can open an operational current account subject to monitoring undertaking.
Standard demand deposit account for commercial transactions. Governed by Section 5(b) Banking Regulation Act 1949 with zero interest and corporate net banking.
Board Resolution under Section 179(3) Companies Act: Tiered authorization limits with dual-control Maker-Checker-Authorizer protocol for corporate internet banking.
Under Supreme Court Ram Chander Talwar [2010], a bank nominee under § 45ZA is solely a collection agent providing discharge to the bank, not the beneficial owner. Funds vest in legal heirs.
Domestic business account. Exposed to Section 226(3) Income Tax and Section 83 CGST provisional attachments. Section 171 banker's set-off has prior charge over matured bank debts.
Supreme Court Precedent & RBI Master Direction Compliance Notice
Opening current accounts in breach of the RBI Master Direction dated August 6, 2020 (as revised) exposes both the borrower and the non-lending bank to penal regulatory action, including mandatory account closure, credit line freezing, and forensic audit for fund diversion. Furthermore, under the landmark Supreme Court ruling in Ram Chander Talwar v. Devinder Kumar Talwar (2010) 10 SCC 671, nomination in bank deposits under Section 45ZA of the Banking Regulation Act 1949 does not confer absolute ownership; the nominee holds funds in fiduciary capacity as trustee for the rightful legal heirs under applicable succession laws.
Banking & Forex Governance
Explore our full institutional advisory practice covering RBI current accounts, FEMA accounts, operating mandates, and attachment defense.
Banking Governance Handbook
Step-by-step procedural manual on RBI current account tiers, operating mandates, *Ram Chander Talwar*, and Section 226(3) defenses.
Capital Raising Evaluator
Evaluate Section 180(1)(c) debt headroom, Section 42 private placement 60-day clocks, and RBI ECB automatic route limits.
Schedule a Banking Governance Audit
Engage our regulatory compliance team to audit current account structures under RBI guidelines, optimize FEMA non-resident accounts, and formalize corporate operating mandates.