The Reserve Bank of India (RBI) has revised current account norms effective from April 1, 2026, offering greater banking flexibility to businesses with exposure below ₹10 crore. The move enables MSMEs and growing enterprises to operate accounts across multiple banks with fewer restrictions. These changes are expected to improve liquidity management, banking access, and ease of doing business in India.
Highlights
1. Major Relief for MSMEs & Growing Businesses
RBI has increased the unrestricted banking exposure threshold from ₹5 crore to ₹10 crore, allowing smaller businesses to open and operate Current, CC, and OD accounts with multiple banks more freely. This significantly improves operational flexibility for MSMEs.
2. Reduced Dependency on a Single Bank
Earlier, businesses often depended heavily on one lender for transactional banking. The revised norms encourage businesses to diversify banking relationships, improving negotiation power, service quality, and access to better financial products
3. Improved Cash Flow & Working Capital Management
Easier access to multiple banking channels will help businesses manage collections, payments, and working capital more efficiently. Faster fund movement and fewer restrictions can enhance day-to-day liquidity management.
4. Positive Impact on Banking Competition
The updated framework promotes healthier competition among banks. Financial institutions will now need to offer better service quality, digital capabilities, and customized solutions to attract and retain SME customers.
5. Balanced Regulatory Approach by RBI
While RBI has relaxed norms for businesses below ₹10 crore exposure, it has retained structured conditions for larger borrowers above ₹10 crore. This ensures financial discipline while still supporting ease of doing business for smaller enterprises
6. Boost to India’s Ease of Doing Business Ecosystem
The move aligns with RBI’s broader objective of strengthening credit access, improving banking efficiency, and supporting business growth. It is expected to particularly benefit the MSME sector, which plays a key role in employment and economic expansion
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