The Reserve Bank of India (RBI on December 11, 2025, issued amendment directions to the RBI (Regional Rural Banks – Credit Risk Management) Directions, 2025 originally notified on November 28, 2025. The amendments introduce a comprehensive new framework for the maintenance and monitoring of Cash Credit (CC), Current Accounts, and Overdraft (OD) Accounts by banks, replacing the earlier Chapter VI.
The revised framework strengthens credit discipline by outlining differentiated rules for CC, current, and OD accounts based on the borrower’s total banking exposure. For borrowers with exposure below ₹10 crore, banks may freely maintain current or OD accounts. For borrowers with exposure of ₹10 crore or more, eligibility to maintain such accounts depends on a bank’s minimum 10% share in system-wide exposure or fund-based exposure, with provisions for exceptions, NOCs, and limited collection accounts where eligibility is not met. The amendments also define rules for collection accounts, mandate rapid fund transfers to designated accounts, outline exemptions, and prescribe robust compliance monitoring procedures.
Additional safeguards prohibit misuse of accounts for unauthorized third-party transactions, restrict activities of unlicensed entities, and require system-level monitoring for unusual activity. Term loan disbursals are encouraged to be routed directly to beneficiaries rather than via borrower accounts. These amendments will come into effect on April 1, 2026, though banks may adopt them earlier.
[Notification No. RBI/2025-26/145; DOR.CRE.REC.351/07-02-004/2025-26]
