RBI Amends Bank Account Rules, Easing CC/OD Restrictions

• RBI amended directions for cash credit, current, and overdraft accounts.
• Restrictions on cash credit accounts removed for borrowers with ₹10 crore or more exposure.
• Banks with over 10% exposure to a borrower can now maintain current and overdraft accounts.
• Top two lenders by exposure can maintain current/OD accounts if few banks exceed the 10% threshold, modifying the earlier two-bank cap.
• RBI rejected proposals for extended remittance timelines and law enforcement exemptions, retaining monitoring norms.

Why It Matters: RBI's updated rules simplify bank account management for businesses and banks.