RBI makes it easier for businesses to open bank accounts
Big update from the RBI: Starting April 1, 2026, businesses with loans under ₹10 crore can open current and overdraft accounts with a wider range of banks—not just the ones they borrowed from.
This doubles the old limit and gives companies much more freedom in managing their money.
More banks, more flexibility
Now, small finance banks, local area banks, regional rural banks, and co-operative banks are all fair game for these accounts (though payments banks are still excluded).
If your loan is ₹10 crore or above, you'll still need to stick with your main lenders.
Collection account rules and key exemptions
Non-lending banks can hold collection accounts but must send funds to the main account within two days—meant to keep things transparent.
Accounts set up by law or under FEMA rules aren't affected by these changes.
Overall, this move should make life easier for growing businesses that want more banking options without being tied down to one lender.