RBI relaxes rules on current, CC and OD accounts; threshold raised to ₹10 crore

The central bank said all these three different accounts can be treated as transaction accounts by any customer, and such a customer can open such accounts without any restriction if the aggregate exposure of the banking system to the customer is less than Rs 10 crore.

This threshold has been increased from Rs 5 crore earlier. Two banks can maintain such accounts with the customer. The new rule will be effective from April 2026.In case of exposure of the banking system to any customer is Rs 10 crore or more, then a bank may maintain current accounts or OD accounts provided that the bank has either a minimum 10% share in banking system’s aggregate exposure to the borrower; or a minimum 10% in banking system’s aggregate fund-based exposure to the borrower.

If no bank meets the criteria, or only one bank meets the criteria, two banks from the banking system having the largest exposures to the borrower may maintain current accounts or OD accounts.

The RBI also said a bank may provide cash credit facilities as per the needs of the customer, without any restriction.A CC account is operationally different from a current account or OD account, given its primary nature as a working capital facility linked to the value of the borrower’s current assets.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 and designated by the borrower for this purpose.