RBI eases current account opening rules for exposure below Rs 5 cr

Rules changed after feedback from the Indian Banks' Association and other stakeholders, says the regulator

In a relief to small-size firms, the Reserve Bank of India (RBI) on Friday relaxed rules for opening current accounts with the banking system’s exposure of less than Rs 5 crore. The RBI asked banks to take an undertaking from borrowers that they will inform lenders when the credit facilities availed reaches Rs 5 crore or more.

The rules have been tweaked based on feedback received from Indian Banks’ Association (IBA) and other stakeholders, the RBI said.

Borrowers with banking system’s exposure of Rs 5 crore or more can maintain current accounts with any one of the banks with which it has