Mumbai, Dec. 12 -- The Reserve Bank of India (RBI) has withdrawn its proposal that had said that only two banks should be allowed to open current accounts for a corporate borrower, with each of the lenders holding at least 10% of the total loans given by the entire banking sector to that company. The RBI's draft proposal on current accounts for companies, released on October 1, triggered a pushback from private sector banks. On November 11, Mint had reported that private banks had argued that the proposed norms would effectively tilt the playing field in favour of public sector banks, which dominate consortium lending and, therefore, enjoy higher exposure shares. The proposal had also raised concerns around customer choice, digital transaction efficiency, and the adverse impact on private sector banks' low-cost deposits. However, the final RBI rules for commercial banks, small finance banks, payments banks, local area banks, regional rural banks, and cooperative banks have removed this cap entirely. In a statement on Thursday, the RBI said it has examined stakeholder views and incorporated modifications accordingly, while publishing a detailed statement explaining its decisions. A bank may maintain current account or overdraft (OD) account without any restriction in case of customers where the aggregate exposure of the banking system to the customer is less than Rs.10 crore. A bank may maintain current accounts or OD accounts as per the needs of the customer provided that the bank has either a minimum 10% share in banking system's aggregate exposure to the borrower; or a minimum 10% share in banking system's total fund-based exposure to the borrower. In case where only one bank within the banking system has any exposure to the borrower, one more bank of the customer's choice within the banking system may maintain current accounts, subject to a no-objection certificate (NOC) from the bank that has the exposure to the borrower. "In case where no Scheduled Commercial Bank (SCB) meets the criteria, but the borrower desires to have a current account with an SCB, such borrowers may maintain current accounts with any one SCB of their choice," RBI said....