Reserve Bank of India removes restrictions on banks opening and maintaining cash credit accounts

The Reserve Bank of India (RBI) has removed all restrictions on banks opening and maintaining cash credit accounts under new transaction account rules. A latest update from the central bank noted that a cash credit account is operationally different from a current or overdraft account. The RBI also eased norms for opening and maintaining current and overdraft accounts. Banks can now maintain current accounts without restriction for customers with banking exposures under 100 million rupees. However, for exposures exceeding 100 million rupees, banks holding at least 10% exposure to a borrower may offer current and overdraft facilities.

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