Meaning of Multiple Banking|
Multiple Banking is a banking arrangement where a borrowal avails of finance independently from more than one bank. Thus, there is no contractual relationship between various bankers of such borrower. Also in such arrangement each banker is free to do his own credit assessment and old security independent of other bankers.
RBI Guidelines on Multiple banking
Answer: RBI has allowed this type of banking. There are no significant specific guidelines issued by RBI on multiple banking.
Operational difficulty for borrowers
In multiple banking arrangement, a borrower gets freedom to deal with each bank separately and thus can negotiate borrowal terms one to one with each bank. As rider, such borrower also has to spend more time and effort in dealing with multiple banks.