The Reserve Bank of India (RBI) has announced a relaxation of restrictions on cash credit facilities, following stakeholder feedback on earlier draft norms.

In its statement, the central bank highlighted that cash credit accounts operate differently from current accounts and overdraft accounts, warranting a revision of previous restrictions suggested in the October draft for borrowers with over Rs 10 crore exposure.

While the RBI accepted changes to allow any lending bank with over 10% exposure to maintain transaction accounts, it declined other suggestions on transactional monitoring and compliance.

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