RBI has issued consolidated/ revised guidelines and instructions for scheduled commercial banks and payment banks, regarding opening of Current Accounts and Cash Credit/ Overdraft (CC/ OD) Accounts in various cases, to enforce credit discipline amongst the borrowers as well as to facilitate better monitoring by the lenders.
RBI has prescribed these guidelines for opening of current accounts for borrowers based on their exposure range from the banking system, like below Rs. 5 crore, Rs. 5 crore and more but below Rs. 50 crore, 50 crore and more. Also RBI has prescribed separate guidelines for opening of current accounts for borrowers having exposure from CC/ OD and Other Credit facilities.
It may be noted that non-lending banks are not permitted to open current/ collection accounts for borrowers having exposure of Rs. 5 crore or more from the banking system. However, in the case of borrowers having aggregate exposure of less than Rs. 5 crore, banks have been allowed to freely open current accounts, i.e. without any restrictions, except for obtaining an undertaking from such customers/ borrowers for informing any increase in exposure to Rs. 5 crore or more.
Also, RBI has permitted Banks to open and operate the certain current accounts without any restrictions.
RBI Notification dt. 19/04/2022: Consolidated Circular/ Guidelines/ Instructions on Opening of Current Accounts and CC/OD Accounts by Banks
RBI Notification dt. 14/12/2020: Revised Guidelines for Opening of Current Accounts by Banks; Need for Discipline