Co-acceptance of Bills
In its Master Circular No. RBI/2015-16/76 DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on ”Guarantees and Coacceptances”, the RBI had reiterated the need for the banks to be cautious while co-accepting bills of their customers and discounting the same so as to avoid loss to banks arising on account of frauds perpetrated in the guise of bills. The circular requires the banks, inter alia, not to extend their coacceptances to house bills/ accommodation bills drawn by group concerns on one another. In its circular the RBI had also listed a number of safeguards to be undertaken by banks while co-accepting bills.