- These cover Current Accounts (CA), Cash Credit (CC), and Overdraft (OD) facilities across seven regulated entities.
- Entities include Commercial Banks, Small Finance Banks (SFBs), Payments Banks, Local Area Banks (LABs), Regional Rural Banks (RRBs), Urban Co‑operative Banks (UCBs), and State/Rural Co‑operative Banks.
- CC accounts are excluded from restrictions, recognizing them as asset‑backed working capital facilities, giving flexibility to MSMEs.
- For CA/OD accounts, if borrower exposure is below ₹10 crore, banks face no restrictions.
- If exposure is ₹10 crore or above, a bank must hold at least 10% of system exposure to operate such accounts.
- The guidelines will be effective from April 1, 2026, though banks may adopt them earlier.
Question:
Q1. The RBI’s final guidelines on Transaction Accounts (Current Account, Cash Credit, and Overdraft) issued in December 2025 will come into effect from:a) 1 January 2026
b) 1 April 2025
c) 1 April 2026
d) 1 July 2026
Answer c): The guidelines will be effective from April 1, 2026, though banks may adopt them earlier.
