RBI big update! Central bank changes current account opening rules for borrowers with exposure

RBI has changed the current account opening rules for borrowers with credit exposure. 

New Delhi: The Reserve Bank of India (RBI) has changed the current account opening rules for borrowers with credit exposure. RBI has allowed banks to open current accounts of borrowers with credit exposure, subject to safeguard provisions.

In a notification, RBI said: "On a review and taking into account feedback received from Indian Banks` Association (IBA) and other stakeholders, it has been decided that banks may open current accounts for borrowers who have availed credit facilities in the form of cash credit (CC) or overdraft (OD) from the banking system (with provisions)."

With the latest change, such borrowers will be allowed to open current accounts without any restriction or on provision of CC of OD facility by banks for borrowers with exposure of less than Rs 5 crore.