RBI issues Amendment Directions on Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks

**Executive Summary** The Reserve Bank of India (RBI) has issued amendment directions on December 11, 2025, concerning the maintenance of cash credit, current, and overdraft accounts by banks. These amendments follow up on seven draft directions issued on October 1, 2025, and incorporate feedback received from stakeholders. A statement on the feedback received is available in the Annex. **Key Points / Main Content** * **Background:** * RBI issued seven draft directions on transaction accounts on October 1, 2025, seeking stakeholder feedback. * The primary aim was to rationalise existing provisions for greater flexibility in opening and maintaining accounts. * Feedback has been examined, and modifications have been incorporated. * **Amendment Directions Issued:** * Reserve Bank of India (Commercial Banks - Credit Risk Management) Amendment Directions, 2025. * Reserve Bank of India (Small Finance Banks - Credit Risk Management) Amendment Directions, 2025. * Reserve Bank of India (Payments Banks - Miscellaneous) Amendment Directions, 2025. * Reserve Bank of India (Local Area Banks - Credit Risk Management) Amendment Directions, 2025. * Reserve Bank of India (Regional Rural Banks - Credit Risk Management) Amendment Directions, 2025. * Reserve Bank of India (Urban Co-operative Banks - Credit Risk Management) Amendment Directions, 2025. * Reserve Bank of India (Rural Co-operative Banks - Credit Risk Management) Amendment Directions, 2025. **Impact Analysis** **Commercial Banks** *Impact:* Affected by the amendments to Credit Risk Management Directions. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Commercial Banks - Credit Risk Management) Amendment Directions, 2025." **Small Finance Banks** *Impact:* Affected by the amendments to Credit Risk Management Directions. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Small Finance Banks - Credit Risk Management) Amendment Directions, 2025." **Payments Banks** *Impact:* Affected by the amendments. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Payments Banks - Miscellaneous) Amendment Directions, 2025." **Local Area Banks** *Impact:* Affected by the amendments to Credit Risk Management Directions. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Local Area Banks - Credit Risk Management) Amendment Directions, 2025." **Regional Rural Banks** *Impact:* Affected by the amendments to Credit Risk Management Directions. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Regional Rural Banks - Credit Risk Management) Amendment Directions, 2025." **Urban Co-operative Banks** *Impact:* Affected by the amendments to Credit Risk Management Directions. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Urban Co-operative Banks - Credit Risk Management) Amendment Directions, 2025." **Rural Co-operative Banks** *Impact:* Affected by the amendments to Credit Risk Management Directions. *Action Required:* Review and implement changes as per the "Reserve Bank of India (Rural Co-operative Banks - Credit Risk Management) Amendment Directions, 2025."

Key Entities Referenced