In order to guarantee that bank accounts for real estate projects are managed in accordance with the guidelines set forth by the Reserve Bank of India (RBI) and the RERA Act, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has sent a letter to the State Level Bank Committee (SLBC).
According to the Authority, all new real estate projects must have three types of accounts opened for them: a collection account, a separate account (also known as a project account), and an expense account. The promotors must also make sure that the banks and other financial institutions give the UPRERA the bank account details of these projects.
“Promoters will ask banks to automatically take out 70 and 30 percent, but no more than that, of the money from the collecting account when opening bank accounts for real estate projects, and deposit that money into separate and transaction accounts, respectively. The UPRERA said in a statement that “banks will not facilitate debit cards, cheque books, and net banking facilities to the promoter in order to ensure utilisation of the number of separate accounts in the construction and development of the project.” Bank accounts will only be operative in the name of the main promoter.
