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The Reserve Bank of India is going to make major changes in the current account rules from April 1, 2026. The new rules will especially affect those companies whose bank loan is Rs 10 crore or more. The purpose of this step is to increase monitoring of funds and strengthen discipline in the banking system.
New Delhi. The Reserve Bank of India (RBI) has announced a major change in the rules related to current account, which will come into effect from April 1, 2026. The purpose of these new rules is to better monitor the movement of funds between banks, to prevent fraudulent or circular transactions and to strengthen credit discipline. Especially for those companies which take loans from multiple banks, their daily cash management process will no longer be as easy as before.
Relief to those with loans less than Rs 10 crore
RBI has given big relief to small and medium businessmen. No additional restrictions have been imposed for companies whose total loan taken from the banking system is less than Rs 10 crore. Such borrowers can open and operate a current account in any bank like before. They will neither be under pressure of deadline for fund transfer nor will they have to face additional monitoring. RBI believes that strictness on small businesses can affect their growth, hence they have been kept out of this framework.
Strict rules on exposure of Rs 10 crore or more
The rules have been made quite strict for companies whose total loan exposure is Rs 10 crore or more. In such cases, only that bank will be able to operate a full current account, which has at least 10 percent stake in the total loan of that company. Banks whose stake is less than 10 percent will be able to open only ‘collection accounts’. Only money can be deposited in the collection account, withdrawal will not be allowed. Neither check book, debit card nor cash or online transfer facility will be available. It will be mandatory to transfer all the money received in this account to the main current account or CC/OD account of the company within two working days.
Provision for monitoring, relaxation and strict action
RBI has also made it clear that accounts related to FEMA or required under any legal or government instructions will be exempted from these rules. Non-eligible banks may open a limited number of accounts for certain banking products, but these will also be receiving accounts only. Banks will have to review such accounts every six months to ensure compliance. If any violation is found, notice will have to be given within one month and it will be mandatory to close the account or convert it into a collection account within three months. Overall, these new rules of RBI are definitely strict for big businessmen, but it is expected to make the banking system more transparent, secure and disciplined.
