The regulatory circular on current accounts issued by the central authority now places firm restrictions on maintaining multiple current accounts by businesses. This move is intended to streamline banking operations, improve credit discipline, and reduce the risk of diversion of funds. By limiting the number of operative accounts a business can maintain across institutions, the framework promotes centralized transaction monitoring and enhances transparency in fund utilization. The restrictions apply more strictly to entities with credit exposure, encouraging them to route transactions through designated accounts only.

Under the revised norms, businesses are expected to align their banking relationships based on credit arrangements, with operational flexibility permitted only under specified thresholds. Institutions have been instructed to review existing account structures and ensure compliance by closing non-permissible accounts or converting them into collection-only formats. The framework outlines a graded approach, depending on the level of credit availed, effectively narrowing down account operations to authorized channels, especially in the case of high-volume or loan-dependent businesses.

This policy shift signals an effort to instill financial discipline, curb unnecessary fragmentation of banking relationships, and ensure that working capital flows are traceable and controlled. Businesses must now reconfigure their treasury operations to remain compliant with the new directives, consolidating activities into primary banking partnerships. In doing so, the system aims to reduce systemic risks, strengthen the oversight of fund flows, and reinforce a cleaner credit ecosystem across the commercial banking landscape.