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(12/12/2025 11:05)

RBI Eases Restrictions on Cash Credit Facilities After Stakeholder Feedback

The Reserve Bank of India on Thursday relaxed restrictions on cash credit facilities, following inputs received from stakeholders on the earlier draft guidelines.

The RBI stated that it has removed the proposed curbs, noting that cash credit accounts function differently from current and overdraft accounts, and therefore warrant separate treatment.

The draft norms issued in October had suggested imposing certain restrictions for borrowers with exposure above Rs 10 crore across the banking system, but these have now been withdrawn.

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