RBI proposes easing curbs on current, cash credit, and overdraft accounts

Oct 1, 2025

RBI has proposed easing restrictions on operating Current, Cash Credit and Overdraft accounts, giving banks more flexibility in handling accounts of regulated borrowers

The Reserve Bank of India (RBI) has proposed easing restrictions on operating transaction accounts — Current Accounts, Cash Credit Accounts and Overdraft Accounts — of bank borrowers, based on experience and feedback from stakeholders.

The central bank had earlier imposed curbs on operating these accounts to enforce credit discipline and improve monitoring. The draft guidelines have now been placed in the public domain for comments.

According to RBI, banks will be granted greater flexibility in managing such accounts, particularly in cases where borrowers are entities regulated by a financial sector regulator.

[The Business Standard]