Archive · 12 Dec 2025
RBI Withdraws Plan to Limit Corporate Current Accounts
The Reserve Bank of India (RBI) has decided not to limit corporate current accounts to just two banks.
Earlier, they had proposed that only two banks could open current accounts for a company, but they changed their mind after banks complained.
The new rules say banks can open current or overdraft accounts for customers with less than ₹10 crore in loans.
If a customer has more loans, banks can open accounts if they have at least 10% of the total loans given to that company.
The RBI also said banks can add more rules to their loan agreements.
These changes will help businesses manage their money better and make sure banks can monitor transactions properly.
RBI withdrew its proposal to limit corporate current accounts to two banks.
Final guidelines allow banks to open current or overdraft accounts for customers with aggregate exposure less than ₹10 crore.
Banks can open accounts if they have at least 10% share in the banking system’s aggregate exposure to the borrower.
Private banks had argued that the proposed norms would favor public sector banks and impact their fee income and liquidity positions.
The new guidelines aim to rationalize transaction account maintenance and strengthen credit risk management norms.
- Who
- Reserve Bank of India (RBI)
- What
- Withdrew proposal to limit corporate current accounts to two banks and issued final guidelines on transaction account operations
- When
- Guidelines effective from April 1, 2024
- Where
- India
- Why
- To address industry concerns and maintain the overall principle-based framework
- Effective Date
- April 1, 2024
- Regulated Entities
- Commercial banks, small finance banks, payments banks, co-operative banks, local area banks, regional rural banks
- Borrower Exposure Threshold
- ₹10 crore or more
- Current Account Restrictions
- Removed entirely
- Current Account Deposits (FY25)
- ₹22.8 trillion
- State-Owned Banks Share
- 38%
- Private Banks Share
- 44.7%
- Foreign Banks Share
- 16.2%
