For the purpose of ensuring ongoing compliance with the new rules, all banks shall monitor transaction accounts maintained with them on a regular basis, and in any case at least once every half-year
The Reserve Bank of India (RBI) today eased bank norms related to opening and maintenance of cash credit, current and overdraft accounts, according to the amended master directions. The RBI had in October issued draft circular for transaction accounts for providing greater flexibility to lenders. “Feedback received on the drafts has been examined and the consequent modifications, as decided by the Reserve Bank, have been suitably incorporated in the final directions.,” the RBI said.
According to the final guidelines, banks can now offer cash credit account to customers basis their needs without any restrictions. Further, a bank may maintain current account or OD account without any restriction in case of customers where the aggregate exposure of the banking system to the customer is less than ₹10 crore.
In case of customers who have more than ₹10 crore exposure to banks, the lenders holding at least 10 per cent exposure to a borrower may provide current and overdraft facilities. In cases where no bank or only one bank exceeds the 10 per cent exposure threshold, the RBI has allowed top two lenders by exposure to maintain current and OD accounts, modifying the earlier two-bank cap.
“Funds credited into a collection account shall be remitted within two working days of receipt of such funds to a CC account, current account, or OD account maintained with any bank in the banking system and designated by the borrower for this purpose. Any disbursement of overdraft limit from an OD account, which is in the nature of a collection account, shall be through the designated account only,” the RBI said.
For the purpose of ensuring ongoing compliance with the new rules, all banks shall monitor transaction accounts maintained with them on a regular basis, and in any case at least once every half-year.
Published on December 11, 2025
