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 stakehol

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