RBI vide its circular dated August 6, 2020 has set out various rules for routing the flow of funds through banks based on parameters like Total Bank Exposure (TBE), nature of credit facilities availed by the customer, nature of bank accounts, etc.

1. Banks should not open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account. For existing borrower having CC/OD facility where a bank’s exposure to a borrower is less than 10 % of the exposure of the banking system to that borrower, credits are freely permitted, debits to these accounts can only be for credit to the CC/OD account of that borrower with a bank that has 10 % or more of the exposure of the banking system to that borrower.
2. For customer who have not availed CC/OD from the banking system, current accounts can be opened as per below:
• For exposure less than ₹ 5 crores, current account can be opened by any bank subject to an undertaking from the borrower.
• For exposure greater than ₹ 5 crores but less than ₹ 50 crores, any lender can open a current account and non-lender can open a collection account with restrictive debits.
• For exposure greater than ₹ 50 crores, the escrow managing bank/agent can open current account.

Further RBI has permitted banks to open specific accounts which are stipulated under various statutes and instructions of other regulators/ regulatory departments, without any restrictions placed in terms of the above-mentioned circular.