RBI latest guidelines for Current Account opening by Banks | Restriction on Current Account / CC/ OD

RBI latest guidelines for Current Account opening by Banks | Restriction on Current Account / CC/ OD
The Reserve Bank of India (RBI) has eased the current account rules for bank exposures less than ₹5 crore. The decision was taken after the feedback from Indian Banks’ Association (IBA) and other stakeholders.
It has been decided that banks may open current accounts for borrowers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system," RBI said in a statement.
In August this year, RBI had extended the deadline for implementing the new current account norms by another three months till October end, following requests from banks. This extension came a year after the central bank introduced guidelines around current account opening to ensure credit discipline and check diversion of funds
As per the revised rules released by RBI, banks can open current accounts of all financial institutions like NABARD, National Housing Bank, Exim Bank and SIDBI without any restrictions. Banks can also open current accounts under specific instructions of state and central governments. It can also open accounts attached by the orders of central or state governments, regulatory bodies, courts, investigative agencies, etc. where a customer cannot make discretion.

For borrowers, where the exposure of the banking system is less than ₹5 crore, there is no restriction on opening of current accounts or on provision of CC/OD facility by banks, subject to obtaining an undertaking from such borrowers that they shall inform the banks, as and when the credit facilities availed by them from the banking system reaches ₹5 crore or more.

Under the new rules, RBI has also allowed banks to open collection accounts provided the funds deposited in such accounts will be remitted within 2 working days to the CC/OD account.

RBI has said that borrower with exposure over ₹5 crore can maintain current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10% of the exposure of the banking system to that borrower.

Further, other lending banks may open only collection accounts subject to the condition that funds deposited in such collection accounts will be remitted within two working days of receiving such funds to the CC/OD account maintained with the above-mentioned bank maintaining current accounts for the borrower.

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CA Ritish Raj (CA, CS,CAIIB,JAIIB)

[debashisgupta]

Excellent demonstration..Very informative...

[veenakhatwani]

For calculation of rs 5 crs loans from NBFC are to be taken into account?
A company has term loan of Rs 3 crs from SBI and Rs 5 crs from NBFC
And company has no CC or OD than which category company will fall

[poonamsantani]

Kya Rbi registered Money exchanger kisi bhi nationalised bank mein CA open kr sakta hai

[abhishekjain]

Hi,

We have currently 40 Cr term loan from axis bank and 20 crore Od from union bank ..in the case if we open 1 lacks od Fd account with axis bank than that case we can do transaction with Axis bank without any restrictions..

[SHAMEEMRanika]

Bhai current-accout jyada khula sakte hain kya

[vishalswami]

Our banking partner is HDFC where our cc exposure is more than 5 crores. And a government department is asking us to furnish FD of a nationalised bank. But these nationalised banks are saying that they can't open FD WITHOUT. A current account.

[sandeepdiscovery]

Meri od limit hdfc mn hai 30 lk ki to mn ab kisi b bank nb current ac khulwa sktavhu kya

[technicalgentleman]

Sir Mera ek cc limit chal raha hai, lekin ek or bank Mei cc limit lena chahte hai, mil sakta hai, annually cc account renewal ke time koi problem toh nahi hoga sir ???? Please reply me 🙏🙏🙏🙏🙏

[TheVishjasz]

Mai CC limit le raha hu under CGT MSE form SBI , so can I take CC limit from other bank also in the same time under CGTMSE ??
But mere stock hyporcate ho raha dono back mai. So is it legal ??
Renewal mai koi issue hogi ??

[ankushshukla]

Sir meri private limited company hai

Kya mai 3-4 current account alag alag banks mai khol sakta hu meri company ke naam pe??

[preetransih]

Hello sir..namaste...SIR..ITR FILE KARNE KE LIYE.. ACCOUNT MEIN KITNA BALANCE HONA CHAIYE...AND .. ACCOUNT NUMBER CHANGE KAR SKTE HAIN YA NHI ..

[CartoonanimationD]

Kya current account ka balance negative ho skta h

[bjdash]

Sir mera partnership firm he uss ka current account he lekin mera individual CC loan he woh mera partnership firm upar koi problem hoga kya