By OneNDF — Empowering India’s Business Borrowers
For years, business owners have shared a common frustration:
“Why am I forced to open my current account only with the bank that gave me a loan?”
Whether it was managing vendor payments, handling collections, or simply preferring a bank closer to their place of business, entrepreneurs often felt restricted by rules that were supposed to make banking easier—not harder.
Last week, the Reserve Bank of India (RBI) finally heard that voice.
In a much-needed step toward ease of doing business, the RBI announced a major relaxation in the rules governing current accounts, cash-credit (CC) limits, and overdraft (OD) structures.
For India’s 6.3 crore MSMEs, this isn’t just a regulation change.
It’s freedom.
What Exactly Has Changed?
1. More Choice for Businesses with Loans Below ₹10 Crore
Earlier, borrowers with exposure above ₹5 crore had to maintain transactional accounts (current/OD) only with their lending banks.
This created bottlenecks and often disrupted cash flow.
Now, RBI has raised the threshold to ₹10 crore.
If your total credit exposure is ₹10 crore or below,
you can now open your current or OD account with any bank you prefer.
This means:
• No more compulsion to bank only with your lender
• Flexibility to choose a bank that offers better service
• Freedom to optimize charges, online capability, and branch reach
2. Cash Credit Restrictions Are Gone
RBI has removed earlier restrictions around Cash Credit (CC) operations.
Banks now have more flexibility in how CC accounts are offered, structured, and managed.
For business owners, this means:
• Faster CC account approvals
• Fewer compliance hurdles
• Simpler working-capital access
3. Banks Can Offer Current Accounts Even If They Hold Just 10% Exposure
For borrowers with exposure above ₹10 crore, RBI has eased rules too.
If a bank holds 10% or more of your overall borrowing, it can now open/operate your current or OD account.
This prevents the earlier scenario where businesses had to juggle multiple accounts unnecessarily.
Why This Is a Big Relief for SMEs
Every founder, manufacturer, trader, and service provider knows this truth:
Cash flow decides survival.
The older norms often tied SMEs to banks that didn’t offer:
• the right digital tools,
• the right pricing, or
• the right support.
This new framework makes banking borrower-centric, not lender-centric.
It gives SMEs the power to choose:
✔ A bank with lower charges
✔ A bank with faster processes
✔ A bank with better technology
✔ A bank closer to their factory, warehouse, or office
It’s a move toward financial freedom and operational efficiency.
How OneNDF Helps You Make the Most of This Change
At OneNDF, we work with over 100+ banks and NBFCs.
Every day, we sit with business owners who face challenges like:
• multiple loan accounts
• mismatched banking structures
• high interest rates
• blocked working capital
• inefficient account mapping
This new RBI guideline opens up fresh opportunities—but only if structured correctly.
Our advisory helps businesses:
• Choose the right bank for current/OD accounts
• Restructure loan exposure to benefit from the ₹10 crore threshold
• Compare CC/OD pricing across lenders
• Optimize charges and transaction limits
• Build a banking setup that supports long-term growth
This is where intelligence meets experience.
The Human Side of This Reform
Behind every MSME is a story—
a son taking forward his father’s factory,
a woman launching her own brand,
a trader rebuilding after COVID,
a family business fighting for survival.
These businesses deserve flexibility.
They deserve options.
They deserve a banking system that supports them—not limits them.
RBI’s decision acknowledges that.
A New Chapter for Business Banking
This change signals a shift toward a more open, modern, and SME-friendly financial ecosystem.
It’s not just a regulation update.
It’s a recognition of the real challenges business owners face every single day.
At OneNDF, we welcome this reform.
And we’re here to help every entrepreneur understand it, benefit from it, and build a stronger financial foundation for the future.
If you want clarity on how this applies to your business, our team at OneNDF is just a call away.
Your growth deserves the right banking partner—and now, finally, you get to choose one.
