Please
refer to Prudential Regulation M-2 for Corporate / Commercial
Banking as amended vide BPRD Circular Letter No. 07 dated
March 09, 2009.
2.
It has been decided to substitute the paragraph (e) of
Prudential Regulation M-2 with the following:
“(e)
Banks / DFIs shall not allow personal accounts to be used
for business purposes except proprietorships, small businesses
and professions where constituent documents are not available
and the banks / DFIs are satisfied with KYC profile of
the account holder, purpose of relationship and expected
turnover of the account keeping in view financial status
& nature of business of that customer.”