The Reserve Bank of India (RBI) has announced new rules for opening and operating current accounts.
These changes aim to prevent fund diversion by borrowers and ensure more discipline in the banking system.
The rules will come into effect from April 1, 2026.
Customers with total debt of less than ₹10 lakh are not affected and can open current accounts freely.
Key Changes for High-Loan Customers
For borrowers with loans above ₹10 crore, only banks that hold at least 10% of the loan can open a current account or cash credit/overdraft (CC/OD) account.
Banks with less than 10% share can only open a collection account.
A collection account can only receive money (credits) but cannot be used for withdrawals or payments.
Funds in the collection account must be transferred within two days to the main account held with a bank that has a 10% or higher stake.
The RBI has strictly prohibited third-party money routing, meaning money cannot be sent through intermediary accounts.
Restricted Facilities and Compliance
Accounts opened by banks with low stakes will have limited access:
Cash deposits and withdrawals will not be allowed
Cheque books and debit cards will remain unavailable
Additionally, banks must now audit accounts every six months. If any violations are found:
Customers will receive a one-month notice
The account must be closed or converted to a collection account within three months
The account must be flagged in the bank’s core banking system
Summary of RBI Current Account Rules
| Category | Terms/Conditions |
|---|---|
| Effective Date | April 1, 2026 |
| Loans < ₹10 crore | No restrictions |
| Loans > ₹10 crore | Only banks with ≥10% loan share can open CC/OD account |
| Banks with low stake | Only Collection Account allowed |
| Collection Account | Credits only; must transfer to main account within 2 days |
| Restricted Facilities | Cash, cheque books, debit cards not allowed |
