The Reserve Bank of India (RBI) on Thursday issued amended directions on the maintenance of cash credit (CC), current, and overdraft (OD) accounts by banks, following feedback on its draft issued on October 1, 2025. The draft had sought stakeholder input to modernise regulations governing transaction accounts.
Under the revised framework, restrictions on cash credit accounts have been removed for borrowers with exposure of ₹10 crore or more. Banks with more than 10% exposure to a borrower are now permitted to maintain current and OD transaction accounts.
In cases where no bank or only one bank exceeds the 10% exposure threshold, RBI allows the top two lenders by exposure to maintain current and OD accounts, modifying the earlier two-bank cap.
RBI rejected several proposals from stakeholders, including an extension of the two-day remittance timeline for collection accounts, which remains in place, and exemptions in cases involving law-enforcement agency instructions.
The central bank also retained monitoring norms for banks to flag accounts, prevent misuse, and ensure authorised use, while declining additional exemptions for specific borrower categories.
The amended directions aim to simplify account maintenance for banks and borrowers while maintaining regulatory oversight to safeguard the integrity of transaction accounts.
