RBI Guidelines on Opening Multiple Current Accounts determine when an Indian business can maintain current accounts with more than one bank, particularly when it has loans or overdraft facilities. Under RBI’s revised framework effective April 1, 2026, banks can generally maintain current accounts without the framework’s exposure-based restrictions when the borrower’s aggregate banking-system exposure is below ₹10 crore. At ₹10 crore or above, lender eligibility and collection-account rules become important.
Quick answer: RBI does not impose a universal one-current-account limit on every business. The restrictions depend mainly on total sanctioned banking credit exposure and the eligibility of the bank maintaining the account. Individual banks still apply KYC, account-opening and lending conditions.
Table of Contents
- What Are the Current RBI Rules?
- How Is Banking Exposure Calculated?
- Rules for Exposure of ₹10 Crore or More
- What Is a Collection Account?
- Practical Examples for Indian Businesses
- Checklist Before Opening Another Account
- What Happens to Existing Accounts?
- Frequently Asked Questions
What Are the Current RBI Rules for Multiple Current Accounts?
RBI’s December 11, 2025 amendments to its Credit Risk Management Directions introduced revised rules effective April 1, 2026. For commercial banks, the key distinction is whether the business has aggregate exposure below ₹10 crore or ₹10 crore and above.
| Business’s aggregate banking exposure | General current-account position |
|---|---|
| Below ₹10 crore | Banks may maintain current or overdraft accounts without restrictions under this particular exposure-based framework, subject to normal bank checks. |
| ₹10 crore or more | Current/OD accounts generally need to be maintained by banks meeting RBI’s lender-exposure eligibility tests, with specified exceptions. |
| ₹10 crore or more, bank not eligible | Such a bank may generally maintain a collection account rather than an unrestricted transaction account. |
Important: The older ₹5 crore and ₹50 crore categories frequently quoted online relate to the previous framework. Do not use them as the current general thresholds without checking the date and applicable direction.
How Is Aggregate Banking Exposure Calculated?
For these rules, exposure means the total sanctioned fund-based and non-fund-based credit facilities a borrower has across banks covered by the framework. It is not the business’s annual sales, GST turnover, bank balance or the amount of money passing through its accounts.
For example, if a wholesaler has a ₹6 crore sanctioned working-capital facility with Bank A and a ₹5 crore sanctioned credit facility with Bank B, its aggregate exposure is ₹11 crore, even if it has not fully drawn those facilities. The ₹10 crore-and-above rules therefore matter.
The revised definition of banking system includes commercial banks, including small finance, regional rural and local area banks, and urban and rural co-operative banks; payments banks are excluded from that definition and have their own relevant directions. Ask your bank to confirm which facilities are counted in your specific case.
Rules for Businesses With ₹10 Crore or More Exposure
Which banks can maintain current accounts?
Under the commercial-bank framework, a bank may generally maintain a current or OD account when it has at least 10% of the borrower’s aggregate banking-system exposure or at least 10% of aggregate fund-based exposure. This is a test of the bank’s share of lending, not the amount deposited in the current account.
What if no bank, or only one bank, qualifies?
RBI provides exceptions. Where no bank or only one bank meets the exposure-share criteria, the two banks with the largest exposures may maintain current or OD accounts. Where only one bank has any exposure, the borrower may also choose one additional bank, subject to a no-objection certificate from the lending bank. Further conditions apply when the borrower wants an account with a scheduled commercial bank but none qualifies under the exposure tests.
These exceptions are not blanket permission to open unrestricted accounts with any number of banks. The banks must verify eligibility and any applicable NOC requirements.
Are cash credit accounts treated the same way?
No. The revised framework treats cash credit (CC) accounts separately because they are working-capital facilities linked to current assets. The chapter does not impose the same restrictions on banks providing CC facilities, although normal lending policies continue to apply.
What Is a Collection Account Under RBI Rules?
A collection account primarily receives business inflows. It is not a substitute for an unrestricted current account. Where the lender-exposure rules require a collection account, funds generally must be transferred to a designated eligible CC, current or OD account within two working days. Permitted statutory payments and bank charges may be subject to the detailed directions.
For example, a distributor may collect payments from customers through an account at Bank C while its designated operating account is at Bank A. If Bank C is eligible only to maintain a collection account, the distributor should not treat Bank C as a normal account for unrestricted supplier payments.
Practical Examples for Indian Businesses
Example 1: A retailer without large bank borrowing
A retailer has a current account at Bank A and wants another at Bank B to receive payments from a second outlet. Its aggregate sanctioned banking credit exposure is ₹30 lakh. The revised exposure-based framework does not prevent the second account merely because it is with another bank. Bank B must still complete normal onboarding checks.
Example 2: A wholesaler with ₹12 crore exposure
A wholesaler has sanctioned banking facilities totalling ₹12 crore. Bank A accounts for ₹8 crore and Bank B for ₹4 crore, so both exceed the 10% exposure-share threshold. Both may qualify to maintain current or OD accounts under the general eligibility rule, subject to applicable conditions. A third bank without qualifying exposure would generally be limited to a collection account.
Example 3: A business crosses the threshold
A distributor maintains two current accounts when its sanctioned banking exposure is ₹8 crore. Later, new sanctioned facilities increase exposure to ₹11 crore. The business should inform its bankers and review whether each account-holding bank remains eligible, rather than assuming accounts can continue unchanged.
Checklist Before Opening Another Current Account
- List sanctioned facilities: Include relevant fund-based and non-fund-based limits across banks.
- Confirm aggregate exposure: Ask the proposed bank to assess the applicable RBI threshold and lender eligibility.
- Check account purpose: Establish whether you need a regular transaction account or a collection account.
- Ask about NOCs: Certain exception cases require lender consent; an NOC is not universally required for every second account.
- Complete bank KYC: Keep business registration, PAN, authorised signatory and address documentation ready as requested by the bank.
- Review loan covenants: Your lender may have contractual conditions in addition to RBI’s account rules.
- Document payment instructions: Tell customers which account to pay and establish who approves transfers.
If you are still deciding whether another account is useful, read Multiple Bank Accounts – The Pros and Cons. This article focuses on RBI eligibility rather than the business advantages and disadvantages.
What Happens to Existing Current Accounts If Eligibility Changes?
Banks must review compliance at least once every half-year. Under the revised directions, if an account becomes ineligible because exposure or lender share changes, the bank must notify the customer promptly, and in any case within one month of observing the ineligibility. The affected account must then be converted into a collection account or closed within the prescribed three-month period following notification, subject to the detailed directions.
Do not move business receipts or close an account without coordinating with the banks, especially where customer collections, standing instructions, GST refunds or supplier payments are involved.
Keeping Billing and Payment Records Organised
RBI eligibility is decided by banks, not billing software. Once the account structure is confirmed, businesses still need accurate invoices, customer payment records and visibility into outstanding dues. myBillBook online accounting software helps Indian businesses create GST invoices, record payments and review business reports. These records can support internal tracking, but they do not replace bank statements or establish RBI compliance.
For practical account-by-account workflows, see Tips to Manage Multiple Bank Accounts Efficiently.
Frequently Asked Questions
Can a business open two current accounts in different banks?
Yes, where the proposed banks can maintain the accounts under applicable RBI rules and complete their own checks. Having a second account is not automatically prohibited.
Is ₹10 crore the current RBI threshold for multiple current accounts?
Under the revised exposure-based framework effective April 1, 2026, ₹10 crore is the key threshold for unrestricted maintenance of current/OD accounts versus additional lender-eligibility conditions. It refers to aggregate sanctioned banking credit exposure, not turnover.
Does a business with no bank loan need RBI permission for a second current account?
The exposure-based restrictions generally do not prevent a business with no banking credit exposure from maintaining multiple current accounts. Banks still conduct due diligence and may impose their own account-opening conditions.
Does every second current account require an NOC?
No. An NOC applies in specified exceptions, including certain cases where only one bank has lending exposure and the borrower chooses an additional bank. Ask the bank to identify the applicable provision.
What is the difference between a current account and a collection account?
A regular current account can support permitted business receipts and payments. A collection account under the restricted framework mainly receives funds and transfers them to a designated eligible account within the required timeframe.
Are the old ₹5 crore and ₹50 crore rules still applicable?
Those figures belong to the earlier framework. The revised directions effective April 1, 2026 introduced a ₹10 crore threshold. Always refer to the currently applicable RBI directions and the category of bank involved.
