The RBI on Thursday announced new rules and limitations on the opening of current accounts by borrowing businesses. The rules require businesses to open existing accounts or cash-credit/overdraft accounts just with banks that have lent considerable loans into them.The purpose is to make sure that banks, that provide loans have an notion of their cash flows of the corporation. RBI has also led lending banks not to utilize present accounts to path loans. Rather, since duration loans are for certain purposes, banks need to directly debit the capital to providers of products and services to the borrower.The goal clearly is to avoid siphoning of funds from creditors. Thus far, many borrowers choose loans from public sector banks nevertheless utilize private and foreign banks due to their daily operational present accounts, apparently as these banks offer you great cash management solutions and products.Foreign and personal banks typically don’t contribute much to midsize corporates. However, all banks enjoy current accounts since they are a inexpensive supply of funds.It remains to early to say who is going to be the winners and winners of the rules. Will private banks such as HDFC Bank, ICICI Bank and Axis Bank shed a few account to PSU banks or can they rather draw in some accounts from overseas banks? It’s too premature to tell.But initial the rules:1. Henceforth, banks can’t open existing accounts for borrowers that have a cash bank report with every other bank.2. If borrowers don’t have any cash-credit account with any bank, they fall under 3 categories:a. Borrowers having less Rs 5 crore loans from banks: For companies, any bank can open a current accountb. For borrowers with Rs 5-50 crore loans from banking system, only lending banks may open current account; non-lending banks may only open collection accounts i.e. these accounts can receive money, which have to be paid into the cash-credit account of the lending bank. Since these have to be done usually on the same day, the collection accounts do not offer some gains for the collecting bankc. For borrowers with over 50 crore loans from the banking system, one lender bank has to open an escrow account and only this bank can open current account. Other banks can open collection accounts, but no non-fund based facility can be given on the balances in these accounts; non-lending banks can’t open current accounts.3. For cash-charge and overdraft (CC/OD) facility, banks with over 10 percent exposure can open CC/OD accounts; other lenders can have collection accounts; but have to debit money only to CC/OD accounts of banks that have more than 10 percent exposure to the borrower.Bankers told CNBC-TV18 they are still unclear of how these will be operationalised and await an FAQ from RBI on how and when the database on lenders will be put together by drawing from RBI’s CRILC and other credit bureaus’ data.There will also be questions on how these rules will be monitored. Also when a borrower’s loans from the banking system cross the Rs 5 crore mark and then the Rs 50 crore mark, how will the changes be effected?On the face of it, the biggest gainers of the new rules are public sector banks who will have more than 10 percent exposure to most mid-sized corporates.Why are mid-sized corporates attractive? Bankers say, large companies like Reliance have excellent treasury operations and they never let money lie idle in a current report. The best clients for banks hankering after cheap current account floats are mid-sized corporates who allow money to lie idle in current accounts.But then private banks don’t usually lend much to mid-corporates. Foreign banks lend even less. It’s possible some current accounts flow from foreign banks to private banks, and some flow from private banks to PSU banks. Alternately, if a client is offering a large float, private banks can top up their loans to reach the 10 percent exposure mark.The grapevine says the original ask of the large lending banks was that only the leader of the consortium should operate the current and CC/OD account of a borrower.Private banks have been able to wrangle a major concession by ensuring that banks together with up to 10 percent exposure could offer present accounts to a borrower.The jury is still out on how it will play between banks. But for the system and the economy, it will hopefully bring more credit discipline and fewer bad loans, since banks should be able to monitor their debtors’ balances .