RBI Revises Guidelines for Current, Cash Credit, and Overdraft Accounts

The Reserve Bank of India (RBI) has issued the Amendment Directions, 2025 to its Commercial Banks – Credit Risk Management framework, effective April 1, 2026.

Key highlights:

• Cash Credit Accounts (CC): Continue as working capital facilities linked to borrower’s current assets without restriction.
• Current Accounts & Overdraft Accounts (OD):
  • No restriction for borrowers with aggregate banking system exposure below ₹10 crore.
  • For exposures ₹10 crore or above, banks maintaining such accounts must meet minimum shareholding criteria or obtain no-objection certificates (NOCs) from other lenders.
  • Non-eligible banks may maintain collection accounts for cash inflows, with funds remitted to designated accounts within two working days.
• Exemptions: Accounts under FEMA, regulated entities, or mandated by statute remain unaffected.
• Special-purpose Accounts: Banks may open product-specific current accounts with restricted usage and robust monitoring, ensuring they are not misused for fund diversion or third-party transactions.
• Compliance & Monitoring: Banks must flag accounts in core banking systems, monitor accounts at borrower and account levels, and notify customers if accounts no longer meet eligibility criteria.
• Term Loan Disbursements: Preferably remitted directly to beneficiaries or specified end-uses rather than via borrower accounts.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13217

RBI Updates Credit Risk Management Norms for Small Finance Banks

The Reserve Bank of India has issued the Small Finance Banks – Credit Risk Management (Amendment) Directions, 2025, effective April 1, 2026 (with optional early adoption). The amendments replace the existing chapter on current and CC/OD accounts with a new framework to strengthen credit discipline and transaction monitoring.

Key highlights:

• Cash Credit (CC) accounts: No restrictions; treated as working capital facilities.
• Current & OD accounts:
  • No limits where total banking system exposure is below ₹10 crore.
  • For exposure ₹10 crore and above, only banks with at least 10% share in aggregate or fund-based exposure may maintain current/OD accounts; others may open collection accounts only.
• Collection accounts: Receipts must be transferred to a designated account within two working days, after permitted debits.
• Exemptions: FEMA-related, statutory, and regulator-mandated accounts are excluded, subject to usage conditions.
• Monitoring & compliance: Regular reviews, CBS flagging, timely conversion/closure of ineligible accounts, and safeguards against misuse.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13218

RBI Updates Current Account Rules for Payments Banks

The Reserve Bank of India has issued the Payments Banks – Miscellaneous (Amendment) Directions, 2025, effective April 1, 2026 (with an option for early adoption).

Key points:

• Defines current accounts as demand deposit accounts other than savings or term deposits.
• Payments banks may maintain current accounts without restriction where aggregate banking system exposure to a customer is below ₹10 crore.
• Where exposure is ₹10 crore or more, only collection accounts may be maintained.
• Collection accounts must transfer funds within two working days to a designated CC, current, or OD account, after permitted statutory debits.
• Exemptions apply to FEMA-related, statutory, and regulator-mandated accounts, subject to conditions.
• Banks must monitor, flag, and review such accounts periodically and convert or close ineligible accounts within prescribed timelines.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13222

RBI Updates Credit Risk Framework for Local Area Banks

The Reserve Bank of India has issued the RBI (Local Area Banks – Credit Risk Management) Amendment Directions, 2025, effective April 1, 2026, amending the existing directions issued on November 28, 2025.

The amendments define Cash Credit (CC) and Current Accounts and introduce a new framework governing the maintenance of CC, Current, and Overdraft (OD) accounts by Local Area Banks. The framework permits unrestricted CC facilities as working capital finance, allows current and OD accounts where aggregate banking system exposure is below ₹10 crore, and prescribes exposure-based conditions for such accounts when exposure is ₹10 crore or more, with other banks limited to collection accounts.

The directions also define collection accounts, specify exemptions for FEMA, statutory and regulated entities, and introduce requirements for monitoring, system flagging, and safeguards to ensure proper utilisation of funds and credit discipline.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13223

Strengthening Credit Risk Controls for Regional Rural Banks

The Reserve Bank of India has issued the RBI (Regional Rural Banks – Credit Risk Management) Amendment Directions, 2025, amending the existing directions dated November 28, 2025. Issued under Sections 21 and 35A of the Banking Regulation Act, 1949, the amendments will come into force from April 1, 2026.

The amendments replace the earlier chapter on opening current and CC/OD accounts with a new framework governing the maintenance of Cash Credit (CC), Current, and Overdraft (OD) accounts by Regional Rural Banks. The framework permits unrestricted CC facilities as working capital finance linked to current assets. Current and OD accounts may be maintained without restriction where aggregate banking system exposure to a borrower is below ₹10 crore, while exposure-based eligibility conditions apply where such exposure is ₹10 crore or more, with other banks limited to collection accounts.

The directions define collection accounts and mandate timely transfer of funds to designated accounts, specify exemptions for FEMA-related accounts, statutory accounts, and accounts of regulated entities, and introduce monitoring, system flagging, and compliance requirements. Additional safeguards are prescribed to prevent misuse of accounts, ensure appropriate utilisation of funds, and encourage direct disbursement of term loans to end beneficiaries.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13219

RBI Amendment on Account Maintenance for UCBs

The Reserve Bank of India has issued the Urban Co-operative Banks – Credit Risk Management (Amendment) Directions, 2025, amending the existing directions dated November 28, 2025, under the Banking Regulation Act, 1949.

Highlights of the Amendments

• Deletion: Paragraphs 19, 20, and 21 under Chapter V, Section B are removed.
• New Chapter VIIIA: Introduces a framework for maintaining Cash Credit (CC), Current, and Overdraft (OD) accounts.

Key Provisions

• Cash Credit Accounts: May be extended without restriction, as working capital facilities linked to current assets.
• Current and OD Accounts:
  • No restrictions where aggregate banking system exposure is below ₹10 crore.
  • For exposure of ₹10 crore or more, only banks meeting specified exposure criteria may maintain current or OD accounts; others may maintain collection accounts only.
• Collection Accounts: Funds must be transferred to a designated account within two working days, subject to permitted debits.

Exemptions and Monitoring

Specified exemptions apply to FEMA-related, statutory, and regulator-mandated accounts. Banks must conduct periodic monitoring, flag accounts in core banking systems, and ensure compliance with usage restrictions.

Effective Date

The amendments take effect from April 1, 2026, with an option for earlier implementation.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13220

RBI Credit Risk Management Amendments for Rural Co-operative Banks

The Reserve Bank of India has issued the Rural Co-operative Banks – Credit Risk Management (Amendment) Directions, 2025, amending the directions dated November 28, 2025, under the Banking Regulation Act, 1949.

Key Highlights

• New Definitions: Introduces formal definitions of Cash Credit (CC), Current Account, and Overdraft (OD).
• Chapter VIA Added: Establishes a framework for maintaining CC, Current, and OD accounts.

Core Provisions

• Cash Credit Accounts: Permitted without restriction as working capital facilities.
• Current and OD Accounts:
  • No restrictions where aggregate banking system exposure is below ₹10 crore.
  • For exposure of ₹10 crore or more, only eligible banks meeting prescribed exposure thresholds may maintain current or OD accounts; others may maintain collection accounts.
• Collection Accounts: Funds must be remitted to a designated account within two working days, subject to permitted debits.

Compliance and Monitoring

Exemptions apply to FEMA-related, statutory, and regulator-mandated accounts. Banks must monitor accounts periodically, flag them in core banking systems, restrict unauthorised third-party usage, and ensure direct remittance of term loan proceeds where applicable.

Effective Date

The amendments take effect from April 1, 2026, with provision for earlier implementation.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13221

RBI Simplifies CRR–SLR Compliance Framework

The Reserve Bank of India has amended the CRR and SLR rules for commercial banks through the CRR and SLR (Amendment) Directions, 2025, following changes under the Banking Laws (Amendment) Act, 2025.

Key Changes Explained Simply

• New Fortnight Definition:
  A fortnight now means the 1st–15th or 16th–last day of a month, effective December 15, 2025.
• Simplified Reporting:
  • Only one Form A is required (no provisional or final returns).
  • Form A to be filed fortnightly and Form VIII monthly, both online via the CIMS portal with digital signatures.
• CRR/SLR Maintenance:
  CRR and SLR maintenance and reporting now follow the revised fortnight cycle, with specific transition arrangements for December 2025 and early January 2026.
• Terminology Updates:
  References to “Friday” are replaced with “last day of the fortnight,” and related formats are updated.

Effective Date

The amendments are effective from December 15, 2025, with limited transitional provisions from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13224

RBI Updates CRR–SLR Rules for Small Finance Banks

The Reserve Bank of India has issued the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025, amending the directions dated November 28, 2025, in line with the Banking Laws (Amendment) Act, 2025.

What Has Changed

• New Definition of Fortnight:
  A “fortnight” now means the 1st–15th or 16th–last day of each calendar month. This change is effective from December 15, 2025.
• Revised CRR and SLR Reporting:
  • Banks are required to submit a single Form A (provisional and final returns are discontinued).
  • Form A is to be filed fortnightly and Form VIII monthly, only through the CIMS portal, using digital signatures of two authorised officials.
  • Paper submission of returns is discontinued.
• CRR and SLR Maintenance:
  Maintenance of CRR and SLR is aligned with the revised fortnight cycle, with specific transitional arrangements for December 13–31, 2025 and the first fortnight of January 2026.
• Technical and Terminology Updates:
  References to “Friday” are replaced with “day” or “last day of the fortnight,” reporting timelines are revised, and related annexures and terminology are updated.

Effective Date

The amendments come into force from December 15, 2025, with select transitional provisions applicable from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13225

RBI Aligns CRR–SLR Rules for Payments Banks with Revised Fortnight Cycle

The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025, amending the directions dated November 28, 2025, pursuant to the Banking Laws (Amendment) Act, 2025.

Key Changes Explained Simply

• Revised Definition of Fortnight:
  A fortnight now means the 1st–15th or 16th–last day of each calendar month. This applies from December 15, 2025.
• Updated CRR and SLR Reporting:
  • Payments Banks are required to submit a single Form A (provisional, final, and special returns are discontinued).
  • Form A must be filed fortnightly and Form VIII monthly, only through the CIMS portal, using digital signatures of two authorised officials.
  • Submission of paper returns is discontinued.
• CRR and SLR Maintenance:
  Maintenance of CRR and SLR is aligned with the revised fortnight cycle, with specific transitional arrangements for December 13–31, 2025 and the first fortnight of January 2026.
• Technical Updates:
  References to “Friday” are replaced with “day” or “last day of the fortnight,” and related provisions, timelines, and annexures are updated.

Effective Date

The amendments take effect from December 15, 2025, with select transitional provisions applicable from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13226

RBI Revises CRR–SLR Framework for Regional Rural Banks

The Reserve Bank of India has issued the Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025, amending the directions dated November 28, 2025, in line with the Banking Laws (Amendment) Act, 2025.

Key Changes Explained

• Updated Definition of Fortnight:
  A fortnight is now defined as the 1st–15th or 16th–last day of each calendar month. This change is effective from December 15, 2025.
• Revised CRR and SLR Reporting:
  • Regional Rural Banks (RRBs) are required to submit a single Form A, discontinuing provisional, final, and special returns.
  • Form A must be submitted fortnightly and Form VIII monthly, exclusively through the CIMS portal, using digital signatures of two authorised officials.
  • Submission of paper returns is discontinued.
• CRR and SLR Maintenance:
  Maintenance requirements are aligned with the revised fortnight cycle, with specific transitional arrangements for December 13–31, 2025 and the first fortnight of January 2026.
• Technical Updates:
  References to “Friday” have been replaced with “day” or “last day of the fortnight,” and related provisions, timelines, and annexures have been updated accordingly.

Effective Date

The amendments come into force from December 15, 2025, with select transitional provisions applicable from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13227

RBI Updates CRR and SLR Framework for Local Area Banks

The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025, amending the directions dated November 28, 2025, pursuant to the Banking Laws (Amendment) Act, 2025.

Key Highlights

• Revised Definition of Fortnight:
  A “fortnight” is redefined as the 1st to 15th day or the 16th to the last day of each calendar month. This revised definition is effective from December 15, 2025.
• Changes in CRR and SLR Maintenance:
  CRR and SLR maintenance and related calculations are aligned with the revised fortnight structure, with specific transitional arrangements for December 13–31, 2025 and the first fortnight of January 2026.
• Simplified Reporting Structure:
  • Discontinuation of provisional, final, and special returns under Form A.
  • Requirement to submit a single Form A on a fortnightly basis and Form VIII on a monthly basis.
  • All submissions must be made electronically through the CIMS portal using digital signatures of two authorised officials.
  • Submission of paper returns is no longer permitted.
• Technical and Terminology Updates:
  References to “Friday” have been replaced with “day” or “last day of the fortnight,” and related paragraphs, timelines, and annexures, including Forms A and VIII, have been updated accordingly.

Effective Date

These amendments come into force from December 15, 2025, except certain transitional provisions which take effect from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13229

RBI Revises CRR and SLR Reporting for Urban Co-operative Banks

The Reserve Bank of India has issued the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025, amending the directions dated November 28, 2025, in accordance with the Banking Laws (Amendment) Act, 2025.

Key Changes

• Revised Definition of Fortnight:
  A “fortnight” is now defined as the 1st to 15th day or the 16th to the last day of each calendar month. This revised definition is effective from December 15, 2025.
• Alignment of CRR and SLR Maintenance:
  CRR and SLR maintenance cycles are aligned with the revised fortnight structure, with specific transitional arrangements applicable for December 13–31, 2025 and the first fortnight of January 2026.
• Simplified Reporting Framework:
  • Discontinuation of provisional, final, and special Form B returns.
  • Requirement to submit a single Form B on a fortnightly basis and Form I on a monthly basis.
  • Revised Forms B and I are to be submitted through the Centralised Information Management System (CIMS) portal using the prescribed return codes.
• Terminology and Form Updates:
  References to “Friday” have been replaced with “day” or “last day of the fortnight,” and corresponding updates have been made across relevant paragraphs, annexures, and reporting formats.

Effective Date

The amendments come into force from December 15, 2025, except certain transitional provisions which are effective from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13230

RBI Updates CRR and SLR Framework for Rural Co-operative Banks

The Reserve Bank of India has issued the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025, amending the directions dated November 28, 2025, in line with the Banking Laws (Amendment) Act, 2025.

Key Updates

• Revised Definition of Fortnight:
  A “fortnight” is now defined as the 1st to 15th day or the 16th to the last day of each calendar month. This change is effective from December 15, 2025.
• Alignment of CRR and SLR Maintenance:
  CRR and SLR maintenance is aligned with the revised fortnight structure. Transitional arrangements apply for December 13–31, 2025 and the first fortnight of January 2026.
• Simplified Reporting Structure:
  • Discontinuation of provisional, final, and special Form B returns.
  • Requirement to submit a single Form B on a fortnightly basis and Form I on a monthly basis.
  • Revised Forms B and I are to be submitted through the Centralised Information Management System (CIMS) portal using the prescribed return codes.
• Terminology and Format Changes:
  References to “Friday” have been replaced with “day” or “last day of the fortnight,” with corresponding updates across relevant paragraphs, annexures, and reporting formats.

Effective Date

These amendments come into force from December 15, 2025, except certain transitional provisions which are effective from December 12, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13228