Content
Analysis of RBI Circulars for June 2026
RBI Circulars June 2026
Updates for this month.
Submission of statement/return on Centralized Information Management System (CIMS)
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13465 | Date: June 05, 2026 | Type: guideline
Background
Previously, AD Category – I banks were required to submit a consolidated list of all BOs/LOs/ POs opened and closed during a month by the fifth of the succeeding month to the Reserve Bank of India (RBI), Foreign Exchange Department, Central Office Cell, New Delhi. Additionally, a monthly statement on the number of applicants and total amount remitted from NRO Accounts was to be furnished to the RBI, Foreign Investments Division (NRFAD), Central Office Cell, Parliament Street, New Delhi.
Key Decision
With effect from June 30, 2026, the submission of the consolidated list of BOs/LOs/ POs will be done on the Centralized Information Management System (CIMS) portal with return code - ‘R343’. A ‘NIL’ report must be uploaded if no data is to be furnished.
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RBI Circulars June 2026
Updates for this month.
Submission of statement/return on Centralized Information Management System (CIMS)
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13465 | Date: June 05, 2026 | Type: guideline
Background
Previously, AD Category – I banks were required to submit a consolidated list of all BOs/LOs/ POs opened and closed during a month by the fifth of the succeeding month to the Reserve Bank of India (RBI), Foreign Exchange Department, Central Office Cell, New Delhi. Additionally, a monthly statement on the number of applicants and total amount remitted from NRO Accounts was to be furnished to the RBI, Foreign Investments Division (NRFAD), Central Office Cell, Parliament Street, New Delhi.
Key Decision
With effect from June 30, 2026, the submission of the consolidated list of BOs/LOs/ POs will be done on the Centralized Information Management System (CIMS) portal with return code - ‘R343’. A ‘NIL’ report must be uploaded if no data is to be furnished.
The submission of the monthly statement on NRO Accounts has also been shifted to the CIMS portal with return code - ‘R006’.
| Aspect | Earlier | Now |
|---|---|---|
| Submission Platform for BOs/LOs/ POs List | Physical Submission to RBI, Foreign Exchange Department, Central Office Cell, New Delhi | Centralized Information Management System (CIMS) portal |
| Submission Deadline for BOs/LOs/ POs List | By the fifth of the succeeding month | From June 30, 2026, via CIMS portal |
| Return Code for BOs/LOs/ POs List | Not specified | R343 on CIMS portal |
| Submission Platform for NRO Account Remittance Statement | Physical Submission to RBI, Foreign Investments Division (NRFAD), Central Office Cell, Parliament Street, New Delhi | Centralized Information Management System (CIMS) portal |
| Return Code for NRO Account Remittance Statement | Not specified | R006 on CIMS portal |
Exam Relevance
Reporting Requirements for AD Banks: The requirement for AD Category – I banks to submit specific statements on the CIMS portal under return codes R343 and R006. Why it matters: Demonstrates the evolving digital reporting landscape for foreign exchange transactions and the importance of understanding new regulatory portals for compliance officers and banking professionals.
Related Previous Circulars
- Operating framework for facilitating Outward Remittance services by non-bank entities through Authorized Dealer (Category I) banks in India (13.5.2026, guideline)
- Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026 (06.5.2026, policy_change)
Summary Table
| Parameter | Value |
|---|---|
| Circular Number | RBI/2026-27/98, A.P. (DIR Series) Circular No. 12 |
| Effective Date for CIMS Submission | June 30, 2026 |
| CIMS Portal URL | https://sankalan.rbi.org.in |
| Return Code for BOs/LOs/ POs List | R343 |
| Return Code for NRO Account Remittance Statement | R006 |
| Issuing Authority | Reserve Bank of India (RBI) |
| Applicable Entities | AD Category – I banks |
| Governing Law | Section 10(4) and 11(2) of the Foreign Exchange Management Act (FEMA), 1999 |
Investments by Foreign Portfolio Investors in Government Securities – Amendments to the regulatory framework
Source: https://www.rbi.org.in/releases/BS_CircularIndexDisplay.aspx?Id=13464 | Date: 05.06.2026 | Type: policy_change
Background
Prior to this circular, investments by Foreign Portfolio Investors (FPIs) in Government Securities through the General Route were subject to three specific limits: a short-term investment limit, a security-wise limit, and a concentration limit. This circular announces amendments to this regulatory framework to provide greater ease of investment for FPIs.
Key Decision
The Reserve Bank of India (RBI) has decided to withdraw the requirement for FPIs to comply with the short-term investment limit, security-wise limit, and concentration limit for their investments in Government Securities under the General Route. Furthermore, the sub-categories of investment limits, namely 'general' and 'long-term', have been merged into a single limit for investment in Central Government Securities and State Government Securities (SGSs), respectively.
| Aspect | Earlier | Now |
|---|---|---|
| General Route Limits for Govt. Securities | Subject to short-term investment limit, security-wise limit, and concentration limit. | Withdrawn. FPIs no longer need to comply with these three limits. |
| Investment Limit Categories | Separate 'general' and 'long-term' sub-categories for investment limits. | Merged into a single limit for investment in Central Government Securities and a single limit for State Government Securities (SGSs). |
| Central Govt. Securities Investment Limit (FY 2026-27) | April 2026 – September 2026: ₹4,62,490 Crore. October 2026 – March 2027: ₹4,77,006 Crore. |
|
| State Govt. Securities (SGSs) Investment Limit (FY 2026-27) | April 2026 – September 2026: ₹1,53,043 Crore. October 2026 – March 2027: ₹1,64,242 Crore. |
|
| Additional 'Specified Securities' under Fully Accessible Route (FAR) | Not explicitly defined for new issuances in these tenors. | Government Securities: All new issuances in 15-year, 30-year, and 40-year tenors. Sovereign Green Bonds: All new issuances in 5-year, 7-year, 10-year, 15-year, 30-year, and 40-year tenors. |
| Effective Date of Directions | N/A | Immediately upon issuance of the circular. |
Exam Relevance
Foreign Portfolio Investor Regulations: Understanding the evolving regulatory framework for FPI investments in Indian government securities is crucial. This includes knowing which limits are applicable and how they are revised. Why it matters: Exams often test knowledge of current financial market regulations and their impact on foreign investment.
Related Previous Circulars
- Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026 (06.05.2026, policy_change)
- Investment Portfolio Amendment — Classification Aligned with ECL (27.04.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 05.06.2026 |
| Subject | Investments by FPIs in Government Securities |
| Route Amended | General Route |
| Limits Withdrawn | Short-term investment, Security-wise, Concentration |
| Limit Structure Change | Merger of 'general' and 'long-term' sub-categories |
| Effective Date | Immediately |
Formation of new district in the State of Assam – Assignment of Lead Bank Responsibility
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13463 | Date: June 03, 2026 | Type: Notification
Background
The Reserve Bank of India (RBI) operates a Lead Bank Scheme to improve banking penetration and financial inclusion in districts across India. This scheme assigns responsibility to a designated bank to coordinate banking activities in a particular district.
Key Decision
The Government of Assam (GoA) has notified the formation of a new district named Bajali in Assam. Consequently, the RBI has assigned Canara Bank as the Lead Bank for the newly formed Bajali district. A working code 01O (Numeral Zero, Numeral One and Alphabet O) has been allotted to this new district. The Lead Bank responsibilities for other districts in Assam remain unchanged.
| Aspect | Earlier | Now |
|---|---|---|
| Lead Bank Responsibility for Bajali District | Not applicable | Canara Bank |
| Working Code for Bajali District | Not applicable | 01O |
Exam Relevance
Lead Bank Responsibility: The RBI assigns Lead Bank responsibility to coordinate banking services in districts. Why it matters: Understanding the organizational structure and operational mechanisms of banks, especially in the context of financial inclusion initiatives and regional development.
Related Previous Circulars
- Implementation of Section 51A of UAPA, 1967: Updates to UNSC's 1267/1989 ISIL (Da'esh) & Al-Qaida Sanctions List: Removal of 7 Entries (22.5.2026, notification)
- Operating framework for facilitating Outward Remittance services by non-bank entities through Authorized Dealer (Category I) banks in India (13.5.2026, guideline)
- Guidelines to Facilitate Faster Cross-Border Inward Payments (09.4.2026, guideline)
Summary Table
| Parameter | Value |
|---|---|
| Circular Number | RBI/2026-27/96 |
| Issuing Department | FIDD.CO.LBS.BC |
| Date of Issue | June 03, 2026 |
| Subject | Formation of new district in Assam – Assignment of Lead Bank Responsibility |
| New District | Bajali (Assam) |
| Assigned Lead Bank | Canara Bank |
| Working Code for New District | 01O |
| Governing Authority | Government of Assam (GoA) |
NOP-INR position of Authorised Dealer Category-I banks
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13470 | Date: June 08, 2026 | Type: guideline
Background
The RBI had already prescribed an NOP-INR framework for Authorised Dealer Category-I banks through the A.P. (DIR Series) Circular No. 24 dated March 27, 2026. The new swap windows announced on June 08, 2026 for FCNR(B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings created fresh swap positions that would otherwise inflate banks’ rupee open-position calculations.
Key Decision
RBI has allowed AD Category-I banks to exclude the swap positions arising from the specified June 8 liquidity windows while ensuring compliance with the March 27 framework.
| Aspect | Earlier | Now |
|---|---|---|
| Treatment of swap positions | Counted within the bank’s normal NOP-INR calculation. | Eligible swap positions under the June 8 facilities may be excluded. |
| Covered liabilities | No special carve-out for the new windows. | FCNR(B) deposits, ECBs, and overseas foreign currency borrowings under the June 8 circulars get carve-out treatment. |
| Compliance anchor | Banks relied only on the March 27, 2026 circular. | Banks continue to follow the March 27 circular, but with the new exclusion. |
Exam Relevance
Foreign Exchange Risk Management: Special RBI swap windows can change how banks compute open-position exposure. Why it matters: Banking-awareness questions often test whether a liquidity facility changes reserve, position, or prudential calculations.
Related Previous Circulars
- Operating framework for facilitating Outward Remittance services by non-bank entities through Authorized Dealer (Category I) banks in India (13.5.2026, guideline) — 📰 What Happened RBI issued RBI/2026-2027/82 on May 13, 2026 (Foreign Exchange Department) with an operating framework for outward remittanc
- Submission of statement/return on Centralized Information Management System (CIMS) (5.6.2026, guideline) — ## Submission of statement/return on Centralized Information Management System (CIMS) > Source: https://www.rbi.org.in/scripts/BS_Circul
- Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026 (18.5.2026, guideline) — ## Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions,
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 08.06.2026 |
| Applies To | AD Category-I banks |
| Key Relief | Exclusion of specified swap positions from NOP-INR computation |
| Covered Windows | FCNR(B), ECB, and overseas foreign currency borrowings |
| Reference Circular | A.P. (DIR Series) Circular No. 24 dated 27.03.2026 |
Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13471 | Date: June 08, 2026 | Type: amendment
Background
Under the normal prudential framework, banks maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) against applicable liabilities. After the Governor’s Statement dated June 05, 2026, RBI opened a US Dollar-Rupee swap facility for fresh FCNR(B) dollar funds. To support mobilisation, RBI has modified the reserve treatment for these deposits.
Key Decision
Fresh FCNR(B) deposits of minimum tenor 3 years and maximum tenor 5 years, mobilised from the date of the amendment directions till September 30, 2026, are exempt from CRR and SLR maintenance for commercial banks.
| Aspect | Earlier | Now |
|---|---|---|
| Reserve treatment | Fresh FCNR(B) deposits attracted normal CRR and SLR maintenance. | Eligible fresh FCNR(B) deposits are exempt from CRR and SLR. |
| Eligible tenor | No special swap-window tenor benefit. | Minimum 3 years, maximum 5 years. |
| Availability window | No temporary carve-out. | From the amendment date till 30.09.2026. |
Exam Relevance
Reserve Requirements: RBI can grant temporary CRR/SLR exemptions to support a targeted foreign-currency mobilisation window. Why it matters: Questions often test which liabilities get reserve relief, for whom, and for what period.
Related Previous Circulars
- NOP-INR position of Authorised Dealer Category-I banks (08.6.2026, guideline) — ## NOP-INR position of Authorised Dealer Category-I banks > Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13470
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment) — 📰 What Happened RBI issued RBI/2026-27/79 on May 08, 2026 for Commercial Banks , amending capital adequacy directions. The circular replace
- Concentration Risk Second Amendment — ECGC Reference Update (27.4.2026, amendment) — Country risk classification reference updated to ECGC in Concentration Risk Directions. Paragraph 131 explanation modified.
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 08.06.2026 |
| Applies To | Commercial banks |
| Eligible Liability | Fresh FCNR(B) deposits |
| Tenor Condition | 3 to 5 years |
| Exemption Window | Till 30.09.2026 |
| Reserve Relief | CRR and SLR exemption |
Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13478 | Date: June 10, 2026 | Type: policy_change
Background
Commercial-bank credit rules already covered the real-estate and infrastructure sectors, but they did not provide a dedicated operational framework for lending directly to REITs and InvITs. Market-linked trust structures require special safeguards around valuations, cash flows, leverage, and acquisition financing. RBI has now inserted a detailed prudential framework into the commercial-bank credit directions.
Key Decision
RBI has permitted commercial banks to lend to SEBI-regulated REITs and InvITs under board-approved policies. The framework sets conditions on appraisal, leverage, exposure caps, end-use monitoring, acquisition finance, and lender protections. It also defines when overseas-branch syndication exposures can receive limited relief.
| Aspect | Earlier | Now |
|---|---|---|
| Direct eligibility | No detailed dedicated lending chapter for REITs/InvITs. | Banks may lend to SEBI-regulated REITs/InvITs under a new prudential framework. |
| Exposure discipline | No specific asset-value cap in this chapter. | Exposure may go up to 49% of trust asset value or a lower board cap. |
| Acquisition finance | No trust-specific acquisition-finance conditions. | Permitted subject to detailed conditions on control, valuation, cash flows, and collateral. |
| Implementation date | Earlier rules continued without this structure. | Effective from 01.10.2026, or earlier if adopted in entirety. |
Exam Relevance
Bank Credit to Market Structures: RBI distinguishes ordinary corporate lending from prudentially-guarded lending to market trusts like REITs and InvITs. Why it matters: Questions can easily test exposure caps, regulator linkage, and implementation dates for new lending permissions.
Related Previous Circulars
- IRAC Repeal — New Asset Classification, Provisioning and Income Recognition Directions 2026 (27.4.2026, policy_change) — RBI repeals IRAC Directions 2025 and replaces with new ACPIR Directions 2026 introducing Stage 1/2/3 classification aligned with IndAS 109/I
- Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026 (06.5.2026, policy_change) — 📰 What Happened RBI issued A.P. (DIR Series) Circular No. 09 (RBI/2026-27/78) on May 06, 2026, notifying the Foreign Exchange Management (A
- Investments by Foreign Portfolio Investors in Government Securities – Amendments to the regulatory framework (5.6.2026, policy_change) — ## Investments by Foreign Portfolio Investors in Government Securities – Amendments to the regulatory framework > Source: https://www.rb
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 10.06.2026 |
| Entities Covered | Commercial banks |
| Structures Covered | REITs and InvITs |
| Overseas Syndication Threshold | 20% of total deal funding |
| Exposure Cap | 49% of trust asset value or lower board cap |
| Effective Date | 01.10.2026 or earlier on full adoption |
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13479 | Date: June 10, 2026 | Type: amendment
Background
Once RBI permitted wider lending to REITs through the commercial-bank credit-facility amendment, it also needed a concentration-risk backstop. Without that, banks could legally lend but still become over-exposed to one trust-based asset class. The concentration-risk amendment fills that prudential gap.
Key Decision
RBI has prescribed that the sub-limit for a bank’s aggregate exposure towards REITs shall be subject to a prudential ceiling of 10% of the bank’s eligible capital base.
| Aspect | Earlier | Now |
|---|---|---|
| REIT concentration cap | No dedicated REIT sub-limit in the concentration-risk chapter. | Aggregate REIT exposure capped at 10% of eligible capital base. |
| Policy linkage | Credit-facility liberalisation stood alone. | Concentration-risk rules now move in tandem with the new REIT lending framework. |
| Effective date | No REIT-specific concentration date. | 01.10.2026, or earlier on full adoption. |
Exam Relevance
Bank Concentration Risk: Regulatory permission to lend is often paired with a separate concentration ceiling. Why it matters: Banking exams frequently test prudential caps in percentage terms and their capital linkage.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment) — 📰 What Happened RBI issued RBI/2026-27/79 on May 08, 2026 for Commercial Banks , amending capital adequacy directions. The circular replace
- Concentration Risk Second Amendment — ECGC Reference Update (27.4.2026, amendment) — Country risk classification reference updated to ECGC in Concentration Risk Directions. Paragraph 131 explanation modified.
- Capital Adequacy Third Amendment — Stage 1/2 Provisions in Tier 2 (27.4.2026, amendment) — Stage 1 and Stage 2 provisions qualify for Tier 2 capital, replacing 'general provisions on standard assets'. Consequential to ACPIR 2026.
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 10.06.2026 |
| Applies To | Commercial banks |
| Asset Class | REIT exposure |
| Prudential Ceiling | 10% of eligible capital base |
| Policy Trigger | Consequential to the June 10 REIT credit-facility changes |
| Effective Date | 01.10.2026 or earlier on full adoption |
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13480 | Date: June 10, 2026 | Type: amendment
Background
RBI’s June 10 framework opened the door for wider commercial-bank lending to REITs. That permission needed a matching capital-adequacy treatment so banks could not understate the prudential cost of such exposures. The capital-adequacy amendment now plugs that gap by assigning explicit risk weights.
Key Decision
RBI has inserted a new capital-adequacy rule stating that exposures to REITs shall be treated as Commercial Real Estate (CRE) exposures with 100% risk weight. If the same exposure qualifies as a capital-market exposure, the risk weight becomes 125%. Lending to REITs through overseas branches of Indian banks will attract 150% risk weight.
| Aspect | Earlier | Now |
|---|---|---|
| Base prudential treatment | No dedicated REIT risk-weight rule. | REIT exposure treated as CRE exposure with 100% risk weight. |
| Capital-market treatment | No specific REIT override. | If classed as capital-market exposure, the risk weight becomes 125%. |
| Overseas branch treatment | No dedicated REIT overseas risk weight. | Overseas-branch REIT lending gets 150% risk weight. |
Exam Relevance
Capital Adequacy: A new asset-class permission usually requires a matching risk-weight prescription in capital norms. Why it matters: Percentage-based risk weights are classic exam memory points.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026 (10.6.2026, amendment) — ## Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026 > Source: https://www.rbi.o
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment) — 📰 What Happened RBI issued RBI/2026-27/79 on May 08, 2026 for Commercial Banks , amending capital adequacy directions. The circular replace
- Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026 (08.5.2026, amendment) — 📰 What Happened RBI issued RBI/2026-27/80 on May 08, 2026 for Small Finance Banks , amending capital adequacy directions. The circular repl
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 10.06.2026 |
| Applies To | Commercial banks |
| Base REIT Risk Weight | 100% |
| Capital-Market REIT Risk Weight | 125% |
| Overseas-Branch REIT Risk Weight | 150% |
| Effective Date | 01.10.2026 or earlier on full adoption |
Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13481 | Date: June 10, 2026 | Type: policy_change
Background
Small Finance Banks traditionally operate under a narrower business model than full-service commercial banks. Even so, RBI has now recognised the need for a prudentially controlled route for InvIT financing by SFBs. Because InvIT valuations are cash-flow driven and linked to underlying infrastructure assets, RBI has built a distinct chapter around governance, asset coverage, and portfolio discipline.
Key Decision
RBI has permitted Small Finance Banks to lend to SEBI-regulated InvITs under a board-approved policy covering appraisal, sanctioning, DSCR-linked underwriting, internal limits, cash-flow safeguards, and covenant protections. Exposure may go up to 49% of InvIT asset value or a lower board-imposed ceiling.
| Aspect | Earlier | Now |
|---|---|---|
| Entity allowed | No dedicated InvIT lending chapter for SFBs. | SFBs may lend to SEBI-regulated InvITs. |
| Exposure cap | No explicit InvIT cap under this chapter. | Exposure capped at 49% of InvIT asset value or lower board limit. |
| Governance requirement | No specific InvIT board policy. | A board-approved InvIT lending policy is mandatory. |
| Effective date | Earlier framework continued unchanged. | Effective from 01.10.2026, or earlier on full adoption. |
Exam Relevance
Small Finance Bank Regulation: Even narrower banking categories can receive new lending permissions, but usually with a separate prudential framework. Why it matters: This is the kind of comparative regulation point examiners like to test against commercial-bank rules.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 (10.6.2026, policy_change) — ## Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 > Source: https://www.rbi.org.in/script
- IRAC Repeal — New Asset Classification, Provisioning and Income Recognition Directions 2026 (27.4.2026, policy_change) — RBI repeals IRAC Directions 2025 and replaces with new ACPIR Directions 2026 introducing Stage 1/2/3 classification aligned with IndAS 109/I
- Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026 (06.5.2026, policy_change) — 📰 What Happened RBI issued A.P. (DIR Series) Circular No. 09 (RBI/2026-27/78) on May 06, 2026, notifying the Foreign Exchange Management (A
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 10.06.2026 |
| Applies To | Small Finance Banks |
| New Permission | Lending to InvITs |
| Governance Requirement | Board-approved policy |
| Exposure Cap | 49% of InvIT asset value or lower board cap |
| Effective Date | 01.10.2026 or earlier on full adoption |
Reserve Bank of India (All India Financial Institutions – Credit Facilities) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13482 | Date: June 10, 2026 | Type: policy_change
Background
All India Financial Institutions (AIFIs) are central to long-tenor infrastructure financing, but the earlier credit-facility directions lacked a dedicated prudential structure for InvIT lending and control-oriented acquisition finance. Because these transactions involve leverage, sponsor structures, and cash-flow dependency, RBI has now written detailed entry conditions into the AIFI credit-facility framework.
Key Decision
RBI has permitted AIFIs to lend to SEBI-regulated InvITs and to extend acquisition finance to an acquiring company with infrastructure-financing mandate, subject to detailed conditions. These include a standalone and consolidated minimum net worth of ₹500 crore, a financing cap of 75% of acquisition value, control-linked thresholds, collateral requirements, and portfolio concentration controls.
| Aspect | Earlier | Now |
|---|---|---|
| New permission | No detailed AIFI InvIT lending and acquisition-finance chapter. | AIFIs may lend to InvITs and extend regulated acquisition finance. |
| Acquirer strength | No transaction-specific net-worth floor in this chapter. | Acquiring company must have minimum net worth of ₹500 crore on standalone and consolidated basis. |
| Funding cap | No dedicated InvIT acquisition-finance cap. | Total acquisition finance capped at 75% of independently assessed acquisition value. |
| Effective date | Earlier framework continued unchanged. | Effective from 01.10.2026, or earlier on full adoption. |
Exam Relevance
Development Finance and Infrastructure Funding: Where RBI allows acquisition finance, it usually spells out valuation, control, leverage, and collateral safeguards. Why it matters: This circular is rich in exam facts: percentage caps, net-worth floors, and effective dates.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 (10.6.2026, policy_change) — ## Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 > Source: https://www.rbi.org.in/script
- Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026 (10.6.2026, policy_change) — ## Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026 > Source: https://www.rbi.org.in/sc
- IRAC Repeal — New Asset Classification, Provisioning and Income Recognition Directions 2026 (27.4.2026, policy_change) — RBI repeals IRAC Directions 2025 and replaces with new ACPIR Directions 2026 introducing Stage 1/2/3 classification aligned with IndAS 109/I
Summary Table
| Parameter | Value |
|---|---|
| Circular Date | 10.06.2026 |
| Applies To | All India Financial Institutions (AIFIs) |
| Trust Structure | InvITs |
| Minimum Net Worth of Acquirer | ₹500 crore |
| Maximum Acquisition Finance | 75% of acquisition value |
| Effective Date | 01.10.2026 or earlier on full adoption |
Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13513 | Date: 17.6.2026 | Type: amendment
Background
This amendment pertains to the interest rates that Urban Co-operative Banks (UCBs) can offer on their deposits. The Reserve Bank of India periodically reviews and updates these regulations to ensure financial stability and fair practices within the banking sector.
Key Decision
The Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 modifies the existing directions concerning interest rates on deposits for UCBs. Specific details of the changes, including any new ceilings, limitations, or revised guidelines on interest calculation or payment, are detailed within the full circular.
| Aspect | Earlier | Now |
|---|---|---|
| Interest Rate on Deposits | Governed by previous directions (specify if available) | Subject to updated provisions in Amendment Directions, 2026 |
Exam Relevance
Urban Co-operative Banks: Regulations on interest rates on deposits. Why it matters: Understanding the regulatory framework for UCBs is crucial for assessing their operational capabilities and compliance, a common theme in examinations related to the financial sector.
Related Previous Circulars
Summary Table
| Parameter | Value |
|---|
Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13508 | Date: 16.6.2026 | Type: amendment
Background
This circular amends the existing Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025. It specifically addresses the treatment of exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.
Key Decision
A new paragraph, 25A, is inserted into the Principal Directions. This paragraph outlines the risk weight applicable to exposures guaranteed under ECLGS 5.0.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for ECLGS 5.0 Guaranteed Exposures | Not specified/governed by general prudential norms. | Zero percent for 75% of the guaranteed portion, provided the settlement amount is expected within thirty days of invocation. The remaining exposure attracts risk weight as per extant guidelines. |
Exam Relevance
Capital Adequacy: The circular introduces a specific risk weighting for exposures guaranteed under ECLGS 5.0. Why it matters: This impacts the calculation of risk-weighted assets for Small Finance Banks, thereby affecting their capital adequacy ratios. Understanding specific risk weights for government-backed schemes is crucial for exam preparation.
Related Previous Circulars
Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026
- Date: 08.5.2026
- Key Facts: capital adequacy; CET1 inclusion; quarterly profit formula; small finance banks; paragraph 11(x)
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
- Date: 10.6.2026
- Key Facts: Capital adequacy; REIT exposure; risk weight; commercial real estate; overseas branches
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026
- Date: 08.5.2026
- Key Facts: capital adequacy; CET1 inclusion; quarterly profit formula; commercial banks; paragraph 12(x)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 |
| RBI Circular Number | RBI/2026-27/137 |
| Date Issued | June 16, 2026 |
| Amends | Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025 |
| New Paragraph Inserted | 25A |
| Scheme Covered | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Risk Weight for 75% of Guaranteed Portion (within 30 days) | 0% |
| Authority | Section 35A of the Banking Regulation Act, 1949 |
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13507 | Date: 16.6.2026 | Type: amendment
Background
This amendment pertains to the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025. It addresses the implications of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Government of India and detailed in a circular from the National Credit Guarantee Trustee Company (NCGTC) dated May 08, 2026.
Key Decision
The Reserve Bank of India has amended the Prudential Norms on Capital Adequacy for Non-Banking Financial Companies (NBFCs). Specifically, new provisions have been inserted concerning exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for Exposures guaranteed under ECLGS 5.0 | As per extant guidelines | Zero percent risk weight for 75% of the guaranteed portion, provided the settlement amount is expected within 30 days from invocation. The remaining exposure will attract risk weight as per existing guidelines. |
Exam Relevance
NBFCs: Capital Adequacy requirements are being amended to incorporate the ECLGS 5.0. Why it matters: This demonstrates how government schemes impact regulatory norms for financial institutions, and understanding these changes is crucial for assessing the financial health and risk profiles of NBFCs.
Related Previous Circulars
- Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 (16.6.2026, amendment)
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026 (10.6.2026, amendment)
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 |
| Applicability | Non-Banking Financial Companies (NBFCs) |
| Effective Date | Immediate |
| Key Scheme Mentioned | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Risk Weight on ECLGS 5.0 Guaranteed Portion | 0% on 75% of the guaranteed amount (if settlement within 30 days of invocation) |
Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13500 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026. This circular amends the Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Directions, 2025 (the Master Direction) to update the regulatory framework governing agency business and referral services undertaken by Rural Co-operative Banks (RCBs). The changes aim to refine the definitions and operational guidelines for these activities.
Key Decision
The Master Direction is amended to introduce revised definitions for 'Agency Business' and 'Referral Services', along with new definitions for 'Regulated financial products and services', 'Third-party Product and Service (TPPS)', and 'Third-party Product and Service Provider (TPPSP)'. Several sub-paragraphs in the Master Direction are modified or omitted, and new paragraphs are inserted to emphasize compliance with 'Responsible Business Conduct' Directions and specify fee-based undertakings without risk participation.
| Aspect | Earlier | Now |
|---|---|---|
| Effective Date of Amendment Directions | Not specified for this amendment. | January 01, 2027. |
| Definition of 'Agency Business' | Existing definition. | Substituted to clarify that it means an arrangement under which a bank acts as an agent of a third-party product or service provider (TPPSP), without risk participation, to facilitate the sale of the latter's financial products or services (e.g., insurance, mutual fund, pension fund, etc.) to its own customers. Activities include marketing, sales, promotion, initial point of contact for grievance redressal, and after-sale services. RCBs can only undertake agency businesses as permitted in Chapter III. |
| Definition of 'Referral Services' | Existing definition. | Substituted to clarify that it means an arrangement under which a RCB may refer its customers to a TPPSP by making available information about the financial products or services offered by the TPPSP. RCBs may undertake only such third-party products or services under the Referral route where continued customer interactions such as distribution, grievance redressal, post-sales services are not undertaken. RCBs can only undertake referral business as permitted in Chapter III. |
| New Definitions | Not present. | Inserted: 'Regulated financial products and services' means financial products and services regulated by RBI, SEBI, IRDAI, PFRDA, and Overseas Regulatory Authorities including IFSCA. 'Third-party Product and Service (TPPS)' means a product or service as defined under Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025. 'Third-party Product and Service Provider (TPPSP)' means an entity which has entered into agency business or referral arrangement with a RCB to offer its product or service to a customer of the concerned bank. |
| Omissions in Paragraph 15 of Master Direction | Sub-paras (2), (7), and (10) were present. | Sub-paras (2), (7), and (10) shall be omitted. |
| New Paragraphs (21A, 21B, 21C, 21D) after Paragraph 21 of Master Direction | Not present. | Inserted: 21A. RCB shall ensure full compliance with the Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025. 21B. Business shall be undertaken on a fee basis without any risk participation. This shall be explicitly disclosed upfront to customers. 21C. Ensure insurance companies whose products are sold have robust customer grievance redressal arrangements. The bank may facilitate grievance redressal. 21D. Only such insurance products covered under the arrangement shall be listed or displayed on websites or digital banking channels of RCBs. |
| Modifications in Paragraph 26 of Master Direction | Sub-para (1) contained existing instructions. Sub-paras (2) and (6) were present. | Sub-para (1) shall be substituted to state that an RCB shall comply with the Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025 and relevant IRDAI regulations applicable to referral arrangements with insurance companies. Sub-paras (2) and (6) shall be omitted. |
Exam Relevance
Rural Co-operative Banks: Changes to undertaking of financial services, specifically agency business and referral services. Why it matters: This tests understanding of how regulatory frameworks for co-operative banks evolve, impacting their scope of services and compliance requirements. The emphasis on responsible business conduct and clear disclosure is a recurring theme in banking regulations. Financial Services Undertaking: The circular clarifies the types of financial products and services RCBs can facilitate through third parties and the conditions attached. Why it matters: Understanding the boundaries of permissible activities for banks in offering third-party products is crucial for regulatory compliance and risk management. Agency Business & Referral Services: Precise definitions and operational guidelines for these services are updated. Why it matters: Candidates need to be aware of the distinctions between agency and referral models, and the specific compliance obligations for each, especially concerning customer interaction and grievance redressal.
Related Previous Circulars
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- UCB Stressed Assets Amendment — Financial Difficulty Definition (27.4.2026, amendment)
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 |
| Issuing Authority | Reserve Bank of India |
| Date of Issue | 15.6.2026 |
| Effective Date of Amendment Directions | January 01, 2027 |
| Primary Regulated Entities | Rural Co-operative Banks (RCBs) |
| Key Areas Amended | Agency Business, Referral Services, Definitions of TPPS, TPPSP, Regulated Financial Products/Services |
| Core Compliance Requirement | Adherence to Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025 |
| Nature of Business Undertaking | Fee basis without risk participation |
| Specific Regulatory Compliance Mentioned | RBI, SEBI, IRDAI, PFRDA, IFSCA regulations, and IRDAI regulations for insurance referral arrangements |
| Action on Existing Sub-paragraphs | Omission of certain sub-paras in Paragraph 15 and Paragraph 26 of the Master Direction. Substitution of sub-para (1) in Paragraph 4 and Paragraph 26. Renumbering of a sub-para in Paragraph 4. |
| New Insertions | New definitions and operational guidelines in Paragraphs 21A to 21D after Paragraph 21 of the Master Direction. |
| Reference to Other Directions | Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025 |
| Governing Legislation | Section 35A read with Section 56 of the Banking Regulation Act, 1949 |
| Grievance Redressal Emphasis | Mandate for robust grievance redressal by insurance companies and facilitation by banks. |
| Digital Channel Display Limitation | Only listed insurance products under arrangement to be displayed on digital platforms. |
Reserve Bank of India (Payments Banks – Undertaking of Financial Services) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13497 | Date: June 15, 2026 | Type: amendment
Background
This amendment modifies the Reserve Bank of India (Payments Banks – Undertaking of Financial Services) Directions, 2025 ("Master Direction"). The review of existing regulations governing agency business and referral services has led to these changes, aimed at clarifying and refining the framework for payments banks offering financial services through third parties.
Key Decision
The Reserve Bank of India (RBI), exercising powers under Section 35A of the Banking Regulation Act, 1949, has amended the Payments Banks – Undertaking of Financial Services Directions, 2025. These amendments, effective from January 01, 2027, redefine and clarify the scope of Agency Business and Referral Services that Payments Banks can undertake.
| Aspect | Earlier | Now
Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13494 | Date: 15.6.2026 | Type: amendment
Background
Previously, the Reserve Bank of India (RBI) had issued instructions on 'Advertising, Marketing and Sales' to Housing Finance Companies (HFCs) under Chapter-X, 'Fair Practices Code', within the Reserve Bank of India (Housing Finance Companies) Directions, 2025.
Key Decision
The RBI has decided to issue comprehensive instructions on advertising, marketing, and sale of financial products/services to all Non-Banking Financial Companies (NBFCs), including HFCs. These new instructions will be governed by the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. Consequently, specific sub-sections related to advertising, marketing, and sales within the Housing Finance Companies) Directions, 2025 have been deleted and replaced.
The amendment comes into effect on January 1, 2027.
| Aspect | Earlier | Now |
|---|---|---|
| Advertising, Marketing and Sales for HFCs | Sub-sections A.10 (paragraphs 150 to 154) and A.11 (paragraphs 155 to 157) of Chapter-X of Reserve Bank of India (Housing Finance Companies) Directions, 2025 | Deletion of existing sub-sections and substitution with compliance to paragraphs 101A to 101ZA under Chapter IIIA of Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. |
| Effective Date | N/A | January 1, 2027 |
Exam Relevance
NBFC Regulations: Compliance with the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 for advertising, marketing, and sales by HFCs. Why it matters: Demonstrates the RBI's move towards standardized responsible business conduct for all NBFCs and the alignment of regulations across different categories of financial entities.
Related Previous Circulars
- UCB Stressed Assets Amendment — Financial Difficulty Definition (27.4.2026, amendment) — Financial difficulty definition in UCB Stressed Assets Directions aligned with SFB Directions 2025. Paragraph 5(4)(v) explanation modified. Key Facts: Financial difficulty definition updated; Aligned with SFB Directions 2025; Effective April 01 2027
- Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026 (08.5.2026, amendment) — RBI issued RBI/2026-27/80 on May 08, 2026 for Small Finance Banks, amending capital adequacy directions. The circular replaces paragraph 11(x). Key Facts: capital adequacy; CET1 inclusion; quarterly profit formula; small finance banks; paragraph 11(x)
- Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 (16.6.2026, amendment) — Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026. Key Facts: Small Finance Banks; Capital Adequacy; Prudential Norms; ECLGS 5.0; Risk Weight
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026 |
| RBI Directorate | DOR.MCS.REC.No.103/01-01-039/2026-27 |
| Circular Number | RBI/2026-27/124 |
| Applicable Entity | Housing Finance Companies (HFCs) and other NBFCs (excluding CICs, NBFC-AAs, NOFHCs, and NBFCs without customer interface) |
| Effective Date | January 1, 2027 |
| Amending Document | Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 |
Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13491 | Date: 15.6.2026 | Type: amendment
Background
These amendment directions build upon the Reserve Bank of India (Rural Co-operative Banks – Responsible Business Conduct) Directions, 2025, by introducing comprehensive instructions on advertising, marketing, and the sale of financial products and services by Rural Co-operative Banks (RCBs). The amendments aim to enhance responsible business conduct and protect customers.
Key Decision
The Reserve Bank of India, exercising powers under Sections 35A and 56 of the Banking Regulation Act, 1949, has issued these amendment directions that will come into effect from January 1, 2027. These directions modify the 2025 Directions by inserting new definitions and introducing new sections related to advertising, marketing, and sale of financial products/services.
| Aspect | Earlier | Now |
|---|---|---|
| Definition of Compulsory Bundling | Not explicitly defined or regulated | Defined as making availment of one product/service conditional upon availment of another product/service offered by the RCB. |
| Definition of Dark Pattern | Not explicitly defined | Defined as deceptive design patterns intended to mislead or trick users, subverting consumer autonomy. |
| Definition of Explicit Consent | Not explicitly defined in this context | Defined as a specific, informed, and unambiguous indication of an individual’s choice, given through a duly recorded/documented statement or clear affirmative action. |
| Definition of Mis-selling | Not explicitly defined in this context | Defined to include: sale of unsuitable products, sale without complete/correct information, sale without explicit consent, compulsory bundling, and other regulator-defined mis-selling elements. |
| Policy for Advertising, Marketing, and Sale | Implicitly covered under general responsible business conduct. | Comprehensive policy required, covering suitability, feedback, compensation, and DSA/DMA engagement. |
| Engagement of DSAs/DMAs | Not explicitly detailed. | Detailed guidelines on eligibility, due diligence, training, performance, and control mechanisms. |
| Disclosure of DSAs/DMAs | Not mandated. | RCBs must maintain and display an up-to-date list of empanelled DSAs/DMAs on their website. |
| Customer Consent for Communication | Not explicitly regulated for promotional messages. | Explicit consent required to send promotional communication/alerts. |
| Unsubscription Process | Not specified. | Process for unsubscribing from services or promotional communication must be easy and simple. |
| Contact Hours for Telephonic Contacts/Visits | Not specified. | Normally between 09:00 hours and 19:00 hours, unless expressly requested by the customer. |
Exam Relevance
Responsible Business Conduct: RCBs are now explicitly prohibited from using "dark patterns" and "compulsory bundling" of products without explicit customer consent. The definition of "mis-selling" has been broadened. Why it matters: This tests understanding of specific regulatory prohibitions designed to protect consumers and ensure fair practices in the financial sector, especially concerning rural co-operative banks. The emphasis on "explicit consent" and clear disclosures is crucial for exam preparation.
Related Previous Circulars
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026
- Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Effective Date | January 1, 2027 |
| Governing Act | Banking Regulation Act, 1949 (Sections 35A and 56) |
| Key Prohibitions | Compulsory Bundling, Dark Patterns |
| Consent Requirement | Explicit Consent for all products/services and promotional communications |
| DSA/DMA Management | Mandatory disclosure of list, code of conduct, and undertakings |
| Contact Hours | 09:00 to 19:00 hours (normal) |
Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13490 | Date: 15.6.2026 | Type: amendment
Background
This amendment builds upon the Reserve Bank of India (Urban Co-operative Banks – Responsible Business Conduct) Directions, 2025. It aims to provide comprehensive instructions on advertising, marketing, and the sale of financial products/services by Urban Co-operative Banks (UCBs).
Key Decision
The Reserve Bank of India has issued amendments to the Responsible Business Conduct Directions for Urban Co-operative Banks (UCBs) with an effective date of January 1, 2027. These amendments introduce new definitions and add a new chapter on Advertising, Marketing, and Sale of Financial Products/Services.
Key new definitions introduced:
- Compulsory bundling: Making the availment of one product/service conditional upon the availment of another.
- Dark pattern: Deceptive design patterns that mislead users into unintended actions.
- Direct Selling Agent (DSA) / Direct Marketing Agent (DMA): Entities/individuals engaged by UCBs to sell/market products/services.
- Explicit consent: Specific, informed, and unambiguous indication of customer agreement.
- Mis-selling: Sale of unsuitable products, sale without complete/correct information, sale without explicit consent, or compulsory bundling.
- Third-party Product or Service (TPPS): Products/services offered by UCBs on behalf of a third-party provider.
New provisions in Chapter IV include:
- A requirement for UCBs to have a comprehensive policy for advertising, marketing, and sale of their own and third-party products/services.
- Strict guidelines for engagement of DSAs/DMAs, including maintaining and displaying an up-to-date list on their website.
- Mandatory upfront disclosure of fees, charges, interest rates, and clear communication of terms and conditions to customers.
- Requirement to obtain explicit consent for offering/selling products/services, with default consent options as 'No'/'I do not agree'.
- Prohibition against advertising TPPS as their own and clarity on UCB's role.
- Easy and simple processes for unsubscribing from services or promotional communications.
- Restrictions on telephonic contacts and visits to customers between 09:00 hours and 19:00 hours, unless expressly requested.
| Aspect | Earlier | Now
Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13512 | Date: 17.6.2026 | Type: amendment
Background
This amendment concerns the interest rates that Local Area Banks can offer on their deposits. While the specific prior directions being amended are not detailed in the provided snippet, the circular indicates a change to the existing framework governing deposit interest rates for these banks.
Key Decision
The Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 have been issued to modify the existing rules on interest rates on deposits for Local Area Banks. The specific details of the amendment, including any new rates, ceilings, or conditions, would be contained within the full text of the circular itself.
| Aspect | Earlier | Now |
|---|---|---|
| Interest Rate on Deposits for Local Area Banks | As per existing directions | As per Amendment Directions, 2026 |
Exam Relevance
Local Area Banks: Changes to interest rates on deposits. Why it matters: Understanding the regulatory environment for different types of banks, including Local Area Banks, is crucial. Amendments to deposit interest rate rules can impact their financial strategies and deposit mobilization efforts, which may be tested in examinations.
Related Previous Circulars
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026 (08.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 |
| Date | 17.6.2026 |
| Type | Amendment |
| Subject | Interest Rate on Deposits for Local Area Banks |
Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13511 | Date: 17.6.2026 | Type: rate_change
Background
Previously, the Reserve Bank of India (RBI) had issued Directions on November 28, 2025, governing interest rates on deposits for Regional Rural Banks (RRBs). This amendment revises certain aspects of these previous directions.
Key Decision
The RBI has decided to temporarily withdraw the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates on NRE deposits of 3 year and above tenors. This change is effective from June 17, 2026, until September 30, 2026. This applies to both fresh deposits and deposits renewed upon maturity.
| Aspect | Earlier | Now |
|---|---|---|
| Interest rate ceiling on fresh FCNR(B) deposits (3-5 year tenors) | Applicable ceiling (Overnight Alternative Reference Rate for the respective currency/Swap plus 350 basis points) | Temporarily withdrawn until September 30, 2026 |
| Restriction on interest rates on NRE deposits (3 year and above tenors) | Shall not be higher than those offered on comparable domestic rupee term deposits | Temporarily withdrawn until September 30, 2026 |
| Applicability | Specified interest rate ceilings | No specified ceiling for the temporary period |
Exam Relevance
Interest Rate Regulations: Withdrawal of interest rate ceilings on FCNR(B) and NRE deposits for Regional Rural Banks until September 30, 2026. Why it matters: This highlights the RBI's flexibility in managing liquidity and deposit mobilization strategies, particularly for non-resident deposits, and could be tested on the specific types of deposits and the temporary nature of the relaxation.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026 (08.6.2026)
- Key Facts: Commercial banks; CRR exemption; SLR exemption; FCNR(B) deposits; swap facility
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026)
- Key Facts: Urban Co-operative Banks; Interest Rate on Deposits; Amendment Directions
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026)
- Key Facts: Local Area Banks; Interest Rate on Deposits; Amendment Directions
Summary Table
| Parameter | Value |
|---|---|
| Entity | Regional Rural Banks (RRBs) |
| Deposit Types Affected | FCNR(B) deposits (3-5 year tenors), NRE deposits (3 year and above tenors) |
| Action | Temporary withdrawal of interest rate ceilings/restrictions |
| Effective Date | June 17, 2026 |
| End Date | September 30, 2026 |
Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13509 | Date: 17.6.2026 | Type: amendment
Background
This amendment modifies the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025, dated November 28, 2025. The objective is to temporarily adjust interest rate regulations on certain types of deposits to address market conditions.
Key Decision
The Reserve Bank of India (RBI) has decided to temporarily withdraw the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates for NRE deposits of 3 year and above tenors. This withdrawal is effective from June 17, 2026, until September 30, 2026. This applies to both fresh deposits and deposits that are renewed upon maturity.
| Aspect | Earlier | Now |
|---|---|---|
| Interest rate ceiling on fresh FCNR(B) deposits (3-5 year tenors) | Subject to ceiling (details in original Directions) | Temporarily withdrawn until September 30, 2026 |
| Restriction on interest rates on NRE deposits (3 year and above tenors) | Subject to restriction (not higher than comparable domestic rupee term deposits) | Temporarily withdrawn until September 30, 2026 |
| Applicability of FCNR(B) and NRE deposit rate changes | As per existing Directions | Applies to fresh deposits and renewals upon maturity within the specified period |
Exam Relevance
Interest Rate on Deposits: Temporary withdrawal of interest rate ceilings on FCNR(B) and NRE deposits for specific tenors. Why it matters: This highlights the RBI's ability to use regulatory tools to influence deposit mobilization and liquidity management for commercial banks, a key aspect of banking regulations tested in examinations.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026 (08.6.2026, amendment) Key Facts: Commercial banks; CRR exemption; SLR exemption; FCNR(B) deposits; swap facility
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment) Key Facts: Urban Co-operative Banks; Interest Rate on Deposits; Amendment Directions
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment) Key Facts: Local Area Banks; Interest Rate on Deposits; Amendment Directions
Summary Table
| Parameter | Value |
|---|---|
| Type of Bank | Commercial Banks |
| Affected Deposits | FCNR(B) deposits (3-5 year tenors), NRE deposits (3 year and above tenors) |
| Action | Temporary withdrawal of interest rate ceilings/restrictions |
| Effective Date | June 17, 2026 |
| Expiry Date | September 30, 2026 |
| Governing Legislation | Section 35A of the Banking Regulation Act, 1949 |
Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13506 | Date: 16.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) had previously issued the Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Directions, 2025. This amendment is in light of the introduction of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 by the Government of India, as communicated by the National Credit Guarantee Trustee Company (NCGTC) on May 08, 2026.
Key Decision
The RBI, exercising its powers under Section 35A of the Banking Regulation Act, 1949, has amended the Prudential Norms on Capital Adequacy for Regional Rural Banks. A new paragraph, 15(5)A, has been inserted.
Exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 will now attract a risk weight of zero percent to the extent of 75% of the guaranteed portion. This is applicable where the settlement amount is expected to be received within thirty days from the date of invocation. The remaining exposure will attract risk weight as per the existing guidelines.
These amendments are effective immediately.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for ECLGS 5.0 Guaranteed Portion | Governed by extant guidelines | Zero percent for 75% of the guaranteed portion, provided settlement is expected within thirty days of invocation. Remaining exposure as per extant guidelines. |
Exam Relevance
Regional Rural Banks: Prudential Norms on Capital Adequacy. Why it matters: This amendment directly impacts how Regional Rural Banks (RRBs) calculate their capital adequacy by assigning a zero percent risk weight to a significant portion of exposures under the ECLGS 5.0. Understanding these specific risk weight treatments is crucial for assessing the capital requirements of RRBs and their ability to support the scheme.
Related Previous Circulars
- Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 (16.6.2026, amendment)
- Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 (16.6.2026, amendment)
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026 (10.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Scheme | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Applicable Entity | Regional Rural Banks |
| Guaranteed Portion Attracting Zero Risk Weight | 75% |
| Condition for Zero Risk Weight | Settlement expected within thirty days from invocation |
| Effective Date | With immediate effect (from June 16, 2026) |
| Amended Provision | Insertion of Paragraph 15(5)A into the Directions, 2025 |
Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13501 | Date: 15.6.2026 | Type: amendment
Background
This amendment aims to update the regulatory framework governing the agency business undertaken by Non-Banking Financial Companies (NBFCs). It also intends to consolidate instructions on customer service and conduct aspects within the Reserve Bank of India (Non-Banking Financial Companies - Responsible Business Conduct) Directions, 2025. The original Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 ("Master Direction") are being modified.
Key Decision
The Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 have been amended to clarify and update provisions related to agency business undertaken by NBFCs.
Key changes include:
- Definition of Agency Business: Clarified to mean an arrangement where an NBFC acts as an agent of a Third-Party Product or Service Provider (TPPSP) without risk participation, to facilitate the sale of the latter's financial products or services. This includes marketing, sales, and after-sale services. NBFCs can only enter into agreements for the sale of regulated financial products or services.
- Effective Date: The amendment comes into effect on January 01, 2027.
- Insurance Distribution Business: NBFCs can undertake insurance distribution (corporate agency or broking) without RBI approval, subject to obtaining necessary permissions from IRDAI, complying with IRDAI regulations and the Responsible Business Conduct Directions, 2025, conducting business on a fee basis without risk participation, ensuring robust grievance redressal by insurers, and only displaying covered products. Home Finance Companies (HFCs) with the prescribed Net Owned Fund (NOF) can also undertake this business under similar conditions.
- Mutual Fund Distribution: NBFCs distributing mutual funds must comply with SEBI guidelines, the Responsible Business Conduct Directions, 2025, undertake business on a fee basis without risk participation, ensure robust grievance redressal by mutual funds, and only display covered products.
- PoP Services for NPS: NBFCs (other than Base Layer NBFCs) meeting CRAR and net profit criteria can undertake Pension Fund Regulatory and Development Authority (PFRDA) PoP services for NPS on a fee basis without risk participation after PFRDA registration. They must adhere to the Responsible Business Conduct Directions, 2025 and PFRDA guidelines.
- Grievance Redressal: It is mandated to ensure that Pension Funds and Mutual Funds whose products are sold have robust customer grievance redressal arrangements. NBFCs can facilitate grievance redressal.
- Definitions: New definitions for 'Regulated financial products and services', 'Third-party Product and Service (TPPS)', and 'Third-party Product and Service Provider (TPPSP)' have been inserted.
| Aspect | Earlier | Now |
|---|---|---|
| Effective Date | Not specified for this specific amendment | January 01, 2027 |
| Agency Business Scope | General | Limited to regulated financial products or services from TPPSP |
| Insurance Distribution Approval | Not explicitly detailed for amendment context | No RBI approval required if conditions met (IRDAI compliance, fee basis, no risk participation, etc.) |
| Mutual Fund Distribution Conditions | Not explicitly detailed for amendment context | Specific conditions including SEBI compliance, fee basis, no risk participation, etc. |
| PoP Services for NPS Eligibility | Not explicitly detailed for amendment context | NBFCs (other than Base Layer) meeting CRAR and profit criteria, with PFRDA registration |
Exam Relevance
Non-Banking Financial Companies (NBFCs): Understanding the regulatory framework for NBFCs, particularly concerning their engagement in agency business, distribution of financial products (insurance, mutual funds), and offering services like PoP for NPS. Why it matters: Examines the evolving role of NBFCs and their compliance requirements, especially regarding customer service and responsible conduct, which are key focus areas for financial sector regulators. Financial Product Distribution: Awareness of the specific regulations and conditions governing the distribution of insurance, mutual funds, and pension products by NBFCs, including the requirement for approvals from sectoral regulators like IRDAI, SEBI, and PFRDA. Why it matters: Tests knowledge of the interplay between different financial sector regulators and NBFCs. Responsible Business Conduct: The circular emphasizes compliance with the Reserve Bank of India (Non-Banking Financial Companies - Responsible Business Conduct) Directions, 2025. Why it matters: Highlights the increasing importance of ethical practices, customer protection, and transparency in financial services, a recurring theme in regulatory examinations.
Related Previous Circulars
- UCB Stressed Assets Amendment — Financial Difficulty Definition (27.4.2026, amendment)
- Key Facts: Financial difficulty definition updated; Aligned with SFB Directions 2025; Effective April 01 2027
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Key Facts: Urban Co-operative Banks; Interest Rate on Deposits; Amendment Directions
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Key Facts: Local Area Banks; Interest Rate on Deposits; Amendment Directions
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Second Amendment Directions, 2026 |
| RBI Circular Number | RBI/DoR/2026-27/131 |
| Date of Issue | June 15, 2026 |
| Effective Date | January 01, 2027 |
| Primary Regulation Amended | Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 |
| Focus Area | Agency Business Undertaken by NBFCs |
| Key Regulators Involved | RBI, SEBI, IRDAI, PFRDA |
| Business Conduct Framework | Reserve Bank of India (Non-Banking Financial Companies - Responsible Business Conduct) Directions, 2025 |
Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13500 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) has issued Second Amendment Directions, 2026 to the Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Directions, 2025 (Master Direction). These amendments aim to refine the regulations governing the undertaking of financial services by Rural Co-operative Banks (RCBs), particularly concerning agency business and referral services. The amendments are made in exercise of powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949.
Key Decision
The Master Direction is amended to redefine and clarify aspects of "Agency Business" and "Referral Services" undertaken by RCBs. Key changes include:
| Aspect | Earlier | Now |
|---|---|---|
| Definition of Agency Business | (Implied previous understanding) | 'Agency Business': An arrangement where a bank acts as an agent for a Third-Party Product or Service Provider (TPPSP), without risk participation, to facilitate the sale of their financial products or services (e.g., insurance, mutual fund, pension fund) to its customers. Activities include marketing, sales, promotion, initial grievance redressal, and after-sale services. RCBs can only undertake agency businesses permitted in Chapter III. |
| Definition of Referral Services | (Implied previous understanding) | 'Referral Services': An arrangement where an RCB may refer its customers to a TPPSP by making available information about their financial products or services. RCBs can only undertake third-party products/services under referral where continued customer interactions like distribution, grievance redressal, and post-sales services are not undertaken. RCBs can only undertake referral business permitted in Chapter III. |
| Regulated Financial Products/Services | Not explicitly defined in the context of agency/referral business. | 'Regulated financial products and services': Financial products and services falling under the regulatory framework of RBI, SEBI, IRDAI, PFRDA, and Overseas Regulatory Authorities including IFSCA. |
| Third-party Product and Service (TPPS) | Not explicitly defined in the context of agency/referral business. | 'Third-party Product and Service (TPPS)': A product or service as defined under the Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025. |
| Third-party Product and Service Provider (TPPSP) | Not explicitly defined in the context of agency/referral business. | 'Third-party Product and Service Provider (TPPSP)': An entity that has entered into an agency business or referral arrangement with an RCB to offer its TPPS to a customer of the bank. |
| Omitted Provisions in Paragraph 15 | Sub-paras (2), (7), and (10) of the Master Direction. | Omitted. |
| New Provisions Inserted after Paragraph 21 | N/A | 21A: RCBs must comply with Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025. 21B: Business must be undertaken on a fee basis without any risk participation, to be disclosed upfront to customers. 21C: Insurance companies must have robust customer grievance redressal arrangements; RCBs may facilitate redressal. 21D: Only covered insurance products shall be listed/displayed on RCB websites/digital channels. |
| Paragraph 26 Compliance | (Implied previous understanding) | Paragraph 26(1) is substituted to require compliance with Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025 and relevant IRDAI regulations for referral arrangements with insurance companies. |
| Omitted Provisions in Paragraph 26 | Sub-paras (2) and (6) of the Master Direction. | Omitted. |
| Effective Date | N/A | These Directions shall come into effect on January 01, 2027. |
Exam Relevance
Rural Co-operative Banks: These amendments impact the scope and operational guidelines for RCBs undertaking financial services, specifically in agency and referral business. Why it matters: Understanding the nuances of these arrangements is crucial for assessing the regulatory compliance and business strategy of RCBs, which are key components of the financial inclusion landscape. Banking Regulation Act, 1949: The amendments are made under Section 35A read with Section 56, highlighting the RBI's powers to issue directions to banks in the public interest. Why it matters: Demonstrates the RBI's continuous efforts to regulate and strengthen the banking sector, particularly co-operative banks, through amendments to existing legislation. Financial Services and Third-Party Products: The clarification on "Agency Business" and "Referral Services" defines the boundaries and permissible activities for RCBs when dealing with financial products of third parties. Why it matters: Understanding these definitions is essential for assessing the types of financial products that RCBs can facilitate, impacting their revenue streams and customer service offerings.
Related Previous Circulars
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- UCB Stressed Assets Amendment — Financial Difficulty Definition (27.4.2026, amendment)
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 |
| Issuing Authority | Reserve Bank of India (RBI) |
| Effective Date | January 01, 2027 |
| Primary Focus | Amendments to directions on undertaking financial services by Rural Co-operative Banks (RCBs) |
| Key Areas Amended | Definitions of Agency Business and Referral Services, compliance with Responsible Business Conduct Directions, risk participation, grievance redressal. |
| Legal Basis | Section 35A read with Section 56 of the Banking Regulation Act, 1949 |
Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13489 | Date: June 15, 2026 | Type: Amendment
Background
The Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Directions, 2025 provided a framework for responsible business conduct by Regional Rural Banks (RRBs). This amendment introduces comprehensive instructions on advertising, marketing, and sale of financial products and services by RRBs, building upon the existing directions.
Key Decision
The Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026 amends the Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Directions, 2025. These amendment directions come into effect from January 1, 2027.
| Aspect | Earlier | Now |
|---|---|---|
| New Definitions | Not explicitly defined | Includes definitions for: - Compulsory bundling - Dark pattern - Direct Selling Agent (DSA) / Direct Marketing Agent (DMA) - DSA / DMA sub-agent - Explicit consent - Mis-selling - Third-party Product or Service (TPPS) |
| Advertising, Marketing and Sale Policy | General responsible business conduct | RRBs must put in place a comprehensive policy covering suitability, appropriateness, feedback, compensation for mis-selling, and aspects related to DSAs/DMAs. |
| Engagement of DSAs / DMAs | Implied | RRBs must maintain and display an up-to-date list of DSAs/DMAs on their website. Employees and DSA/DMA sub-agents must possess requisite qualifications. Representatives of TPPS providers must be clearly distinguishable from RRB employees. |
| Code of Conduct for Sale and Marketing | Not specified | An RRB shall put in place a Code of Conduct applicable to its employees, DSAs/DMAs, sub-agents, and TPPS Provider representatives. Undertakings must be obtained from all involved parties. |
| Consent Requirements | Implicit understanding of customer agreement | Explicit consent is now mandatory for all products/services. Consent must be specific, informed, unambiguous, and obtained through documented statements or clear affirmative actions. Each product/service must be enumerated, and customers can choose individually. Consent records must be preserved for one year from the cessation of the agreement. |
| Disclosure of Key Features | General disclosure | Prominent disclosure of key features (fees, charges, interest rate, risks, financial commitment, lock-in, exit terms) is mandatory. Prescribed formats like Key Facts Statement (KFS) and Most Important Terms and Conditions (MITC) must be used where applicable. |
| User Interface for Consent | Not specified | Process flow must prevent consent without reviewing terms and conditions. The default choice for consent must be ‘No’ / ‘I do not agree’. |
| Promotional Materials/Communications | General advertising rules | RRBs cannot advertise TPPS as their own. Advertising materials must be clear, factual, and disclose interest rates and fees. Promotional communication requires explicit customer consent. Unsubscription process must be easy and simple. |
| Conduct of Employees, DSAs/DMAs | General conduct | Upfront disclosure of fees/charges, communication of terms and conditions, sending communications in approved modes, and adherence to specific telephonic contact/visit timings (09:00 to 19:00 hours, with exceptions for customer requests). |
Exam Relevance
Responsible Business Conduct: The amendments introduce stringent guidelines for Regional Rural Banks (RRBs) regarding the advertising, marketing, and sale of financial products and services. This includes definitions and prohibitions around practices like compulsory bundling and dark patterns, and mandates clear explicit consent and proper disclosure. Why it matters: Candidates preparing for regulatory exams will need to understand these enhanced customer protection measures, especially concerning fair practices and consumer autonomy in financial dealings.
Related Previous Circulars
- Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Directions, 2025 (Basis for the current amendment)
- Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Directions, 2025 (Relevant for agency business arrangements with TPPS Providers)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Effective Date | January 1, 2027 |
| Amended Directions | Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Directions, 2025 |
| Key Focus | Advertising, marketing, and sale of financial products/services by RRBs |
| Mandatory Requirement | Explicit consent for all product/service offerings |
Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13488 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) has issued comprehensive instructions on advertising, marketing, and sales of financial products and services for Local Area Banks (LABs) through the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025. This amendment further refines these guidelines.
Key Decision
The RBI has issued the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Second Amendment Directions, 2026, which will come into effect from January 1, 2027. These amendments modify the existing Directions of 2025 by introducing new definitions and inserting new sections concerning advertising, marketing, and sales practices for LABs.
| Aspect | Earlier | Now |
|---|---|---|
| Effective Date of New Directions | Not specified for these specific amendments | January 1, 2027 |
| Definitions Introduced | N/A | Compulsory bundling, Dark pattern, Direct Selling Agent (DSA) / Direct Marketing Agent (DMA), DSA / DMA sub-agent, Explicit consent, Mis-selling, Third-party Product or Service (TPPS) |
| New Chapter Section | N/A | Chapter IV, Section C: Advertising, Marketing and Sale of Financial Products / Services by LABs (including paragraphs 17A to 17R) |
Exam Relevance
Responsible Business Conduct: Introduction of definitions for "compulsory bundling," "dark patterns," and "mis-selling" in the context of LABs. Why it matters: Candidates need to understand how these practices are defined and regulated to ensure customer protection and fair dealing by financial institutions. Customer Consent: Emphasis on obtaining explicit consent for products/services and promotional communications. Why it matters: Understanding the requirements for obtaining valid consent is crucial for assessing compliance and consumer rights in financial transactions. Marketing and Sales Practices: New guidelines on the conduct of LAB employees, DSAs/DMAs, and TPPS providers. Why it matters: This highlights the regulatory scrutiny on the entire sales chain and the responsibilities of LABs in ensuring ethical practices.
Related Previous Circulars
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 (08.5.2026, amendment)
- Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026 (08.5.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Effective Date | January 1, 2027 |
| Governing Body | Reserve Bank of India (RBI) |
| Affected Entities | Local Area Banks (LABs) |
| Key Focus Areas | Advertising, Marketing, Sales Practices, Customer Consent, Prevention of Mis-selling, Bundling, Dark Patterns |
Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13485 | Date: 15.6.2026 | Type: amendment
Background
This amendment to the Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025, aims to enhance responsible business conduct by commercial banks in their advertising, marketing, and sale of financial products and services. It introduces new definitions and strengthens existing provisions to protect customer interests.
Key Decision
The Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025 are amended with effect from January 1, 2027. The amendment introduces new definitions and modifies existing paragraphs to govern the advertising, marketing, and sale of financial products/services.
| Aspect | Earlier | Now
Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13514 | Date: 17.6.2026 | Type: amendment
Background
This amendment modifies the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Directions, 2025, dated November 28, 2025. The previous directions likely imposed certain interest rate ceilings on deposits.
Key Decision
The Reserve Bank of India has decided to temporarily withdraw the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates on NRE deposits of 3 year and above tenors, including renewals, from June 17, 2026, until September 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Interest rate ceiling on fresh FCNR(B) deposits (3-5 year tenors) | Ceiling applicable | Temporarily withdrawn until September 30, 2026 |
| Restriction on interest rates on NRE deposits (3 year and above tenors) | Restriction applicable | Temporarily withdrawn until September 30, 2026 |
Exam Relevance
Deposits of Non-Residents (NRE/NRO) and Foreign Currency Deposits (FCNR(B)): The temporary withdrawal of interest rate ceilings on specific tenors of NRE and FCNR(B) deposits for Rural Co-operative Banks is a significant policy change. Why it matters: Understanding these temporary relaxations is crucial for assessing the regulatory environment for banks handling foreign currency and non-resident deposits, especially concerning interest rate management and deposit mobilization strategies. It highlights the RBI's flexibility in responding to market conditions.
Related Previous Circulars
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 |
| Effective Date | 17.6.2026 |
| Temporary Withdrawal Period (NRE/FCNR(B) Deposits) | 17.6.2026 to 30.9.2026 |
| Tenors Affected (NRE Deposits) | 3 year and above |
| Tenors Affected (FCNR(B) Deposits) | 3-5 years |
| Affected Entities | Rural Co-operative Banks |
Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13511 | Date: 17.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) had previously issued the Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Directions, 2025, dated November 28, 2025. These directions governed the interest rates that Regional Rural Banks (RRBs) could offer on various types of deposits.
Key Decision
The RBI has decided to temporarily withdraw the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates for NRE deposits of 3 years and above tenors, including renewals. This withdrawal is effective from June 17, 2026, until September 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Interest Rate Ceiling on Fresh FCNR(B) Deposits (3-5 year tenors) | Specific ceiling rates applied. | Temporarily withdrawn. |
| Restriction on Interest Rates on NRE Deposits (3 years and above tenors) | Specific restriction applied. | Temporarily withdrawn. |
| Effective Period of Changes | Governed by 2025 Directions. | June 17, 2026, to September 30, 2026. |
Exam Relevance
Interest Rate on Deposits: Temporary withdrawal of interest rate ceiling on FCNR(B) deposits and restriction on NRE deposits for RRBs. Why it matters: Candidates need to be aware of temporary policy shifts in interest rate regulations for specific bank types and deposit categories, especially concerning foreign currency and non-resident deposits, and their stipulated periods.
Related Previous Circulars
-
Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndex Key Facts: Local Area Banks; Interest Rate on Deposits; Amendment Directions
-
Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_Circu Key Facts: Urban Co-operative Banks; Interest Rate on Deposits; Amendment Directions
-
Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13466 Key Facts: Commercial banks; CRR exemption; SLR exemption; FCNR(B) deposits; swap facility
Summary Table
| Parameter | Value |
|---|---|
| Entities Covered | Regional Rural Banks (RRBs) |
| Deposit Types Affected | FCNR(B) deposits (3-5 year tenors), NRE deposits (3 years and above tenors) |
| Action | Temporary withdrawal of interest rate ceiling/restriction |
| Effective Date | June 17, 2026 |
| End Date | September 30, 2026 |
Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13509 | Date: 17.6.2026 | Type: amendment
Background
This amendment modifies the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025. The RBI has reviewed the existing regulations concerning interest rates on certain deposit types.
Key Decision
The Reserve Bank of India has decided to temporarily withdraw the interest rate ceiling on:
- Fresh FCNR(B) deposits with tenors of 3-5 years.
- Interest rate restrictions on NRE deposits of 3 years and above tenors, including renewed deposits.
This withdrawal is effective from June 17, 2026, until September 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Interest Rate Ceiling on Fresh FCNR(B) deposits (3-5 years tenor) | Subject to ceiling rates (Overnight Alternative Reference Rate for the respective currency/ Swap plus 350 basis points) | Temporarily withdrawn until September 30, 2026. |
| Interest Rate Restriction on NRE deposits (3 years and above tenor) | Interest rates shall not be higher than those offered on comparable domestic rupee term deposits. | Temporarily withdrawn until September 30, 2026. |
Exam Relevance
Banking Regulations: The RBI has temporarily removed interest rate ceilings on certain FCNR(B) and NRE deposits. Why it matters: This impacts how banks can price these deposits and is a significant regulatory change affecting the deposit mobilization strategies of commercial banks and the investment options for non-residents. Understanding these temporary changes is crucial for exams covering banking operations and regulatory frameworks.
Related Previous Circulars
- Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026 (08.6.2026, amendment)
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Effective Date of Amendment | June 17, 2026 |
| Temporary Withdrawal End Date | September 30, 2026 |
| Deposit Types Affected | Fresh FCNR(B) deposits (3-5 year tenors), NRE deposits (3 year and above tenors) |
| Regulatory Body | Reserve Bank of India (RBI) |
| Applicable Entities | Commercial Banks |
Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13506 | Date: 16.6.2026 | Type: amendment
Background
This amendment pertains to the Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Directions, 2025. It follows the introduction of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 by the Government of India, as announced by the National Credit Guarantee Trustee Company (NCGTC) on May 08, 2026.
Key Decision
Regional Rural Banks (RRBs) are being provided with a specific regulatory treatment for exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for ECLGS 5.0 guaranteed exposures | Attracted extant guidelines (unspecified) | Zero percent for 75% of the guaranteed portion, provided settlement is expected within thirty days from invocation. The remaining exposure attracts risk weight as per extant guidelines. |
Exam Relevance
Capital Adequacy: Modifications to risk weights for specific guaranteed exposures. Why it matters: Candidates need to understand how specific government schemes like ECLGS 5.0 can influence the capital requirements of Regional Rural Banks by altering risk-weighted assets.
Related Previous Circulars
- Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
- Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
Summary Table
| Parameter | Value |
|---|---|
| Affected Entity | Regional Rural Banks (RRBs) |
| Scheme Covered | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Guaranteed Portion Treated | 75% |
| Applicable Risk Weight | Zero percent (for the eligible portion) |
| Condition for Zero Risk Weight | Settlement within thirty days from invocation |
| Effective Date | With immediate effect |
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13503 | Date: 16.6.2026 | Type: amendment
Background
This amendment to the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025 addresses the capital adequacy treatment for exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. This scheme was introduced by the Government of India.
Key Decision
Commercial Banks will now have a specific risk weight applied to exposures guaranteed under ECLGS 5.0.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for ECLGS 5.0 guaranteed exposures (within 75% of guaranteed portion) | Not explicitly defined for ECLGS 5.0, would follow general guidelines. | Zero percent to the extent of 75% of the guaranteed portion, provided settlement is expected within thirty days from invocation. |
| Risk Weight for remaining ECLGS 5.0 guaranteed exposures | Not explicitly defined for ECLGS 5.0, would follow general guidelines. | Attract risk weight as per extant guidelines. |
Exam Relevance
Capital Adequacy: ECLGS 5.0 exposures guaranteed by NCGTC will attract a zero percent risk weight for 75% of the guaranteed portion if settlement is within 30 days of invocation. Why it matters: This significantly impacts the capital computation for banks lending under the scheme, making it more attractive by reducing the risk-weighted assets and thus the capital required.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026 (10.6.2026, amendment)
- Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 (16.6.2026, amendment)
- Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 (16.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026 |
| Amendment Effective Date | Immediate |
| Scheme Covered | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Risk Weight for 75% of guaranteed portion (within 30 days) | Zero percent |
| Maximum guaranteed portion covered by zero risk weight | 75% |
| Settlement timeline for zero risk weight | Within thirty days from invocation |
| Regulatory Authority | Reserve Bank of India (RBI) |
| Governing Act | Section 35A of the Banking Regulation Act, 1949 |
Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13500 | Date: 15.6.2026 | Type: amendment
Background
This amendment revises the existing directions governing agency business and referral services undertaken by Rural Co-operative Banks (RCBs). The objective is to refine the regulatory framework for these activities and consolidate customer service and conduct aspects.
Key Decision
The Reserve Bank of India has issued the Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026, effective from January 01, 2027. These directions amend the Master Direction on Rural Co-operative Banks – Undertaking of Financial Services, 2025.
| Aspect | Earlier | Now |
|---|---|---|
| Definition of 'Agency Business' | General arrangement for sale of third-party products/services without risk participation. | 'Agency Business' means an arrangement under which a bank acts as an agent of a third-party product or service provider (TPPSP), without risk participation, to facilitate the sale of the latter's financial products or services (e.g., insurance, mutual fund, pension fund, etc.) to its own customers. Activities include marketing, sales, promotion, initial point of contact for grievance redressal, and other after-sale services. RCBs can only undertake agency businesses as permitted in Chapter III. |
| Definition of 'Referral Services' | General arrangement for referring customers to TPPSPs. | 'Referral Services' means an arrangement under which a RCB may refer its customers to a TPPSP by making available information about the financial products or services offered by the TPPSP. RCBs may undertake only such third-party product or services under Referral route where continued customer interactions such as distribution, grievance redressal, post-sales services are not undertaken. RCBs can only undertake referral business as permitted in Chapter III. |
| New Definitions | N/A | 'Regulated financial products and services': Financial products and services under the regulatory framework of RBI, SEBI, IRDAI, PFRDA, and Overseas Regulatory Authorities including IFSCA. 'Third-party Product and Service (TPPS)': Defined under Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025. 'Third-party Product and Service Provider (TPPSP)': Entity in agency business or referral arrangement with a RCB to offer its product or service to a customer. |
| Omitted Paragraphs in Para 15 | Sub-paras (2), (7), and (10). | Sub-paras (2), (7), and (10) shall be omitted. |
| New Paragraphs after Para 21 | N/A | 21A: RCBs shall be in full compliance with the Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025. 21B: Business shall be undertaken on a fee basis without any risk participation, explicitly disclosed upfront to customers. 21C: Insurance companies whose products are sold must have robust customer grievance redressal arrangements. Banks may facilitate redressal. 21D: Only covered insurance products shall be listed or displayed on RCB websites or digital channels. |
| Compliance for Referral Arrangements (Para 26) | General compliance. | RCBs shall comply with the Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025 and relevant IRDAI regulations applicable to referral arrangements with insurance companies. |
| Omitted Paragraphs in Para 26 | Sub-paras (2) and (6). | Sub-paras (2) and (6) shall be omitted. |
Exam Relevance
Rural Co-operative Banks: The directions clarify the scope and conduct for agency business and referral services undertaken by RCBs. Why it matters: Understanding the permissible activities, disclosure requirements, and compliance with responsible business conduct are crucial for RCBs to operate within regulatory boundaries and serve their customers effectively. Financial Services: The amendments focus on how RCBs can facilitate the sale of financial products like insurance, mutual funds, and pension funds through their network. Why it matters: This impacts the product offerings and customer reach of RCBs, requiring adherence to specific guidelines for regulated products. Customer Service: The circular emphasizes robust grievance redressal mechanisms and upfront disclosure to customers regarding fee basis and risk participation. Why it matters: This reinforces the importance of customer-centric practices and transparency in all financial dealings by RCBs.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026)
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026)
- Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026)
Summary Table
| Parameter | Value |
|---|---|
| Effective Date | January 01, 2027 |
| Amendment to Master Direction | Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Directions, 2025 |
| Key Activities Regulated | Agency Business, Referral Services |
| Responsible Business Conduct Framework | Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025 |
| Business Undertaken On | Fee basis without any risk participation |
Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13499 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) previously issued directions for Urban Co-operative Banks (UCBs) undertaking financial services. This amendment revises the regulatory framework concerning agency business and referral services provided by UCBs. The instructions on customer service and conduct aspects are being consolidated into separate directions.
Key Decision
The RBI has amended the Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Directions, 2025 (the Master Direction) to redefine and regulate agency business and referral services. The amendments come into effect from January 01, 2027.
| Aspect | Earlier | Now |
|---|---|---|
| Definition of 'Agency Business' | Implicitly covered under broader financial services. | Explicitly defined as an arrangement where a bank acts as an agent for a Third-Party Product or Service Provider (TPPSP) to facilitate the sale of financial products or services without risk participation. Includes marketing, sales, promotion, initial grievance redressal, and after-sale services. |
| Definition of 'Referral Services' | Implicitly covered. | Explicitly defined as an arrangement where a UCB may refer its customers to a TPPSP by providing information about their financial products or services. UCBs shall not undertake continued customer interactions like distribution, grievance redressal, or post-sales services under this route. |
| Introduction of 'Regulated Financial Products and Services' | Not explicitly defined. | Defined as financial products and services falling under the regulatory framework of RBI, SEBI, IRDAI, PFRDA, and Overseas Regulatory Authorities including IFSCA. |
| Introduction of 'Third-party Product and Service (TPPS)' and 'Third-party Product and Service Provider (TPPSP)' | Not explicitly defined. | TPPS is defined as per the Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Directions, 2025. TPPSP is an entity that has entered into an arrangement with a UCB to offer its regulated financial product or service. |
| Marketing of Mutual Fund Units | Paragraph 19 of the Master Direction was the basis. | Substituted with new conditions, including compliance with SEBI guidelines, RBI's Responsible Business Conduct Directions, and the requirement for fee-based business without risk participation, with explicit disclosure. Robust grievance redressal by Mutual Funds is mandated. |
| Undertaking Insurance Business as Corporate Agent | Paragraph 22 of the Master Direction was the basis. | Substituted with new conditions, including compliance with exposure norms, loans to directors, CRAR requirements, IRDAI regulations, and RBI's Responsible Business Conduct Directions. Business to be fee-based without risk participation, with explicit disclosure. Robust grievance redressal by insurance companies is mandated. |
| Referral Business with Insurance Companies | Paragraph 25 of the Master Direction was the basis. | Sub-para (1) is substituted to emphasize compliance with RBI's Responsible Business Conduct Directions and relevant IRDAI regulations. Sub-paras (2) and (6) are omitted. |
| Undertaking Online Trading Facility | Paragraph 32 of the Master Direction was the basis. | Substituted to require application through PRAVAAH Portal, with a Board Resolution confirming no tips/recommendations or portfolio management services. Business to be fee-based without risk participation, with explicit disclosure. Robust grievance redressal by broking entities is mandated. |
| Point of Presence (PoP) Services for NPS | Paragraph 31 and 33 of the Master Direction were the basis. | Sub-para (2) of Paragraph 31 is substituted to refer to eligibility criteria in RBI (Urban Co-operative Banks - Branch Authorisation) Directions, 2025. Introductory paragraph of Paragraph 33 is substituted to align with RBI (Urban Co-operative Banks - Branch Authorisation) Directions, 2025 and PFRDA regulations. |
| PoP Adherence | Paragraph 35 of the Master Direction was the basis. | Substituted to emphasize adherence to RBI's Responsible Business Conduct Directions, fee-based business without risk participation (with explicit disclosure), robust grievance redressal by Pension Funds, and compliance with PFRDA instructions. |
Exam Relevance
Urban Co-operative Banks: New definitions and revised conditions for undertaking Agency Business and Referral Services. Why it matters: Understanding the scope of permitted activities for UCBs when partnering with third parties for financial products, especially the distinction between agency and referral, and the emphasis on customer protection and risk-free operations. Banking Regulation Act, 1949: Powers exercised under Section 35A read with Section 56. Why it matters: Demonstrates the RBI's regulatory authority to amend directions to ensure public interest and the soundness of the banking system. Third-Party Financial Product Distribution: Rules for UCBs acting as distributors or referrers for insurance, mutual funds, pension funds, and online trading. Why it matters: Crucial for aspirants to know the compliance requirements, disclosures, and grievance redressal mechanisms mandated for UCBs when dealing with these products.
Related Previous Circulars
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 |
| Effective Date | January 01, 2027 |
| Amends | Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Directions, 2025 |
| Key Focus | Agency Business and Referral Services by UCBs |
| Underlying Act | Banking Regulation Act, 1949 |
| Regulatory Bodies Involved | RBI, SEBI, IRDAI, PFRDA, IFSCA |
| Business Model for Third-Party Products | Fee-based, without risk participation |
Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13498 | Date: 15.6.2026 | Type: amendment
Background
This amendment to the Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Directions, 2025 (Master Direction) revises the regulatory framework governing agency business and referral services undertaken by Regional Rural Banks (RRBs). It also consolidates instructions on customer service and conduct aspects into the Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Directions, 2025.
Key Decision
The Master Direction is amended to redefine and clarify 'Agency Business' and 'Referral Services' for RRBs. These amendments come into effect on January 01, 2027.
| Aspect | Earlier | Now |
|---|---|---|
| Definition of 'Agency Business' | Broadly covered arrangements for facilitating the sale of third-party financial products/services. | 'Agency Business' means an arrangement under which a bank acts as an agent of a Third-Party Product or Service Provider (TPPSP), without risk participation, to facilitate the sale of the latter's financial products or services (e.g., insurance, mutual fund, pension fund, etc.) to its own customers. Activities include marketing, sales, promotion, initial point of contact for grievance redressal, and after-sale services. RRBs can only undertake agency businesses as permitted in Chapter III of these directions. |
| Definition of 'Referral Services' | Not explicitly defined in the same detail. | 'Referral Services' means an arrangement under which an RRB may refer its customers to a TPPSP by making available information about the financial products or services offered by the TPPSP. RRBs may undertake only such third-party product or services under the Referral route where continued customer interactions such as distribution, grievance redressal, post-sales services are not undertaken. RRBs can only undertake referral business as permitted in Chapter III of these directions. |
| New Definitions Inserted | N/A | 'Regulated financial products and services': Financial products and services under the regulatory framework of RBI, SEBI, IRDAI, PFRDA, and Overseas Regulatory Authorities including IFSCA. 'Third-party Product and Service (TPPS)': Defined under Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Directions, 2025. 'Third-party Product and Service Provider (TPPSP)': An entity that has entered into an agency business or referral arrangement with a bank to offer its product or service (TPPS) to a customer of the bank. |
| Marketing of Mutual Funds | Governed by existing paragraphs. | RRBs are permitted to undertake marketing of units of Mutual Funds as an agent. RRBs may enter into agreements with Mutual Funds for marketing their units, subject to compliance with SEBI guidelines/regulations, Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Directions, 2025, undertaking business on a fee basis without risk participation, and having robust customer grievance redressal arrangements with the Mutual Funds. Only permitted products can be listed/displayed on digital channels. |
| Corporate Agency for Insurance | Governed by existing paragraphs. | RRBs may take up corporate agency business for distribution of all types of insurance products, including health and animal insurance, subject to compliance with IRDAI regulations for 'composite corporate agent', Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Directions, 2025, undertaking business on a fee basis without risk participation, and ensuring robust customer grievance redressal arrangements with insurance companies. Only permitted products can be listed/displayed on digital channels. |
| Referral Arrangements with Insurance Companies | Governed by existing paragraphs. | RRBs shall comply with instructions on Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Directions, 2025 and relevant IRDAI regulations applicable to referral arrangements. Sub-paras (2) and (6) of paragraph 23 of the Master Direction are omitted. |
| Disclosure of Commission and Fees | Paragraph 25 of the Master Direction addressed this. | Paragraph 25 under the title 'Disclosure of Commission and Fees to Customers' of the Master Direction is omitted. |
Exam Relevance
Regional Rural Banks (RRBs): This amendment clarifies the scope and conditions under which RRBs can undertake agency and referral businesses for financial products like mutual funds and insurance. Why it matters: Understanding these operational guidelines is crucial for RRB employees and aspirants, as it defines their permissible activities and responsibilities when partnering with third-party financial product providers, impacting customer service and regulatory compliance. Responsible Business Conduct: The consolidation of customer service and conduct aspects into the Responsible Business Conduct directions highlights the increasing emphasis on ethical and customer-centric practices. Why it matters: Demonstrates the RBI's focus on ensuring RRBs conduct business in a fair, transparent, and customer-friendly manner, which is a recurring theme in financial sector examinations.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
- Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 |
| Effective Date | January 01, 2027 |
| Amended Directions | Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Directions, 2025 (Master Direction) |
| Key Areas Amended | Definition of 'Agency Business', Definition of 'Referral Services', Mutual Fund Marketing, Insurance Corporate Agency, Referral Arrangements with Insurance Companies |
| Related Directions | Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Directions, 2025 |
Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13496 | Date: 15.6.2026 | Type: amendment
Background
This amendment modifies the Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Directions, 2025 (the "Master Direction"). The changes are a result of a review of existing regulations governing agency business and referral services undertaken by Small Finance Banks (SFBs). The regulatory instructions on customer service and conduct aspects will be consolidated in the Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Directions, 2025.
Key Decision
The Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Directions, 2025 are amended, with the new directions coming into effect on January 01, 2027. The amendments redefine 'Agency Business' and 'Referral Services', introduce definitions for 'Regulated financial products and services', 'Third-party Product and Service (TPPS)', and 'Third-party Product and Service Provider (TPPSP)', and modify provisions related to undertaking these activities.
| Aspect | Earlier | Now |
|---|---|---|
| Agency Business Definition | (Implicitly covered in existing framework) | 'Agency Business' means an arrangement under which a bank acts as an agent of a third-party product or service provider (TPPSP), without risk participation, to facilitate the sale of the latter’s financial products or services (e.g., insurance, mutual fund, pension fund, etc.) to its own customers. Activities may include marketing, sales, promotion, initial point of contact for grievance redressal, and after-sale services. |
| Referral Services Definition | (Implicitly covered in existing framework) | 'Referral Services' means an arrangement under which a bank may refer its customers to a TPPSP by making available information about the financial products or services offered by the TPPSP. Banks may undertake only such third-party products or services under Referral route where continued customer interactions such as distribution, grievance redressal, post-sales services are not undertaken. |
| New Definitions | N/A | 'Regulated financial products and services': Financial products and services under the regulatory framework of RBI, SEBI, IRDAI, PFRDA, and Overseas Regulatory Authorities including IFSCA. 'Third-party Product and Service (TPPS)': As defined under Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Directions, 2025. 'Third-party Product and Service Provider (TPPSP)': An entity with an agency business or referral arrangement with a bank to offer its TPPS to a customer of the bank. |
| Provisions on Agency Business | (Covered in earlier paragraphs 7 and 8) | Paragraphs 7(1), 7(2), 8, 38 to 40 of the Master Direction are omitted. A new paragraph 37 is substituted, stating that SFBs shall only deal with regulated financial products and services as per Section 6(1)(a) to (m) and (o) of the Banking Regulation Act, 1949. Agency business is to be undertaken on a fee basis without any risk participation, and this must be explicitly disclosed upfront to customers. Robust customer grievance redressal arrangements for the TPPSP are to be ensured. |
| Provisions on Referral Services | (Covered in earlier paragraph 41) | Paragraph 41 is substituted. Banks may refer customers to a TPPSP only for regulated financial products and services. The bank's role must be purely referral, with no selling under referral arrangements. The bank's name or brand shall not feature in any product/service documents. The list of TPPS under referral must be published transparently. Integration with bank platforms for TPPS processes is restricted, with only an access link to redirect the customer to the TPPSP permitted. Proper due diligence for selecting TPPSP is required, considering reputational risks. |
| Effective Date | N/A | January 01, 2027 |
Exam Relevance
Small Finance Banks: Mandated to conduct Agency Business and Referral Services under specific guidelines. Why it matters: Candidates need to understand the scope, limitations, and compliance requirements for SFBs when partnering with Third-party Product and Service Providers (TPPSP), particularly concerning Responsible Business Conduct and customer protection. Regulatory Framework: Understanding the amendments to the Master Direction related to undertaking financial services. Why it matters: Demonstrates awareness of evolving regulatory landscape for banking entities and their engagement with third-party financial products.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
- Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 |
| Effective Date | January 01, 2027 |
| Governing Act | Banking Regulation Act, 1949 (Section 35A, Section 6(1)) |
| Key Activities Covered | Agency Business, Referral Services |
| Risk Participation in Agency Business | Prohibited |
| Role of Bank in Referral Services | Purely referral, no selling |
| Key Disclosure Requirement | Upfront disclosure of fee basis and no risk participation in agency business |
| TPPSP Due Diligence | Mandatory, considering reputational risk |
| Customer Grievance Redressal | Must be robust for TPPSPs |
Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13495 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (“Master Direction”) governed how commercial banks undertake financial services. This circular amends those directions based on a review of existing regulations concerning agency business and referral services. The RBI is exercising its powers under Section 35A of the Banking Regulation Act, 1949, deeming these amendments necessary and expedient in the public interest.
Key Decision
The Master Direction is amended, with the revised regulatory framework for agency business and referral services provided. Notably, regulatory instructions on customer service and conduct aspects will be consolidated in the Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025. These Amendment Directions come into effect on January 01, 2027.
| Aspect | Earlier | Now |
|---|---|---|
| Definition of Agency Business | (Implicit in existing directions) | 'Agency Business' means an arrangement where a bank or its group entity acts as an agent of a Third-Party Product or Service Provider (TPPSP) without risk participation, to facilitate the sale of financial products or services (e.g., insurance, mutual fund, pension fund) to its customers. Activities include marketing, sales, promotion, initial grievance redressal, and after-sale services. |
| Definition of Referral Services | (Implicit in existing directions) | 'Referral Services' means an arrangement where a bank refers its customers to a TPPSP by sharing information about the TPPSP’s financial products or services. Banks can only undertake such third-party products/services under referral where continued customer interactions like distribution, grievance redressal, and post-sales services are not involved. |
| Definition of Regulated Financial Products and Services | Not explicitly defined in this context. | Introduced as "financial products and services which fall under the regulatory framework of any of the financial sector regulators viz. Reserve Bank of India, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA) and Overseas Regulatory Authorities including IFSCA". |
| Definition of Third-Party Product and Service (TPPS) | Not explicitly defined in this context. | Defined as per Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025. |
| Definition of Third-Party Product and Service Provider (TPPSP) | Not explicitly defined in this context. | An entity that has entered into an agency business or referral arrangement with a bank to offer its TPPS to the bank's customers. |
| Agency Business Conditions | (Existing provisions) | Banks shall only deal with regulated financial products and services as permitted under sub-section (a) to (m) and (o) of Section 6(1) of the Banking Regulation Act, 1949. Agency business must be on a fee basis without risk participation. An agreement with the TPPSP is required. Banks should facilitate grievance redressal, and the TPPSP must have robust grievance redressal arrangements. |
| Referral Services Conditions | (Existing provisions) | Banks can refer customers only for regulated financial products and services. The bank's role is purely referral; they cannot sell under this arrangement. The bank's name/brand shall not feature in any TPPS documents. A list of TPPS under referral must be published transparently. TPPS platforms should not be integrated with the bank’s platform, except for a redirect link. Proper due diligence on TPPSP is required to mitigate reputational risk. |
| Omitted Provisions | Paras 7(1), 7(2), 8, 59 to 61 of the Master Direction. | These paragraphs have been omitted from the Master Direction. |
| Insurance Brokerage | (Existing provisions) | Banks may, at their option, act as an insurance broker departmentally subject to conditions under paragraph 58 on agency business. |
| Effective Date | (As per original Master Direction) | January 01, 2027. |
Exam Relevance
Commercial Banks, Financial Services, Agency Business, Referral Services, Banking Regulation Act: These amendments clarify and redefine the scope and conduct of agency business and referral services undertaken by commercial banks. Understanding these changes is crucial for compliance and for assessing the evolving business models of banks. The direct link to Section 6(1) of the Banking Regulation Act, 1949, and the emphasis on regulated financial products and services highlight the regulatory boundaries. Why it matters: These changes impact how banks can partner with third-party providers to offer financial products, directly affecting customer access to services and bank revenue streams, and are a key area of focus for banking sector regulations.
Related Previous Circulars
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Third Amendment Directions, 2026 |
| Issuing Authority | Reserve Bank of India |
| Effective Date | January 01, 2027 |
| Governing Act | Banking Regulation Act, 1949 (Section 35A) |
| Key Areas Amended | Agency Business, Referral Services definitions and conditions |
| Consolidation of Instructions | Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025 |
| Scope of Products | Regulated Financial Products and Services |
| Basis for Agency Business | Fee basis without risk participation |
Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13494 | Date: 15.6.2026 | Type: amendment
Background
Previously, the Reserve Bank of India had issued instructions on 'Advertising, Marketing and Sales' to Housing Finance Companies (HFCs) under Chapter-X on 'Fair Practices Code' within the Reserve Bank of India (Housing Finance Companies) Directions, 2025. These extant instructions have been reviewed.
Key Decision
The Reserve Bank has decided to issue comprehensive instructions on advertising, marketing, and sale of financial products/services to all Non-Banking Financial Companies (NBFCs), including HFCs, but excluding specific entities like Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs without customer interface. These new instructions will be under the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. The existing sub-sections A.10 'Advertising, Marketing and Sales' and A.11 'Code of Conduct for DSAs/DMAs' in Chapter-X of the Reserve Bank of India (Housing Finance Companies) Directions, 2025 will be deleted and substituted.
| Aspect | Earlier | Now |
|---|---|---|
| Applicable Instructions for HFCs on Advertising, Marketing, and Sales | Sub-sections A.10 (paragraphs 150-154) and A.11 (paragraphs 155-157) of Chapter-X of RBI (HFCs) Directions, 2025. | Compliance with paragraphs 101A to 101ZA under Chapter IIIA of the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. |
| Effective Date | Not specified for this amendment. | January 1, 2027. |
Exam Relevance
Responsible Business Conduct: HFCs are now mandated to comply with specific provisions for advertising, marketing, and sales of financial products/services as outlined in the comprehensive NBFC Responsible Business Conduct Directions. Why it matters: This signifies a move towards a standardized and more stringent regulatory framework for customer-facing activities of NBFCs, emphasizing ethical practices and consumer protection across the sector.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026 |
| Date of Issue | June 15, 2026 |
| Effective Date | January 1, 2027 |
| Amending Authority | Reserve Bank of India |
| Applicable Entity | Housing Finance Companies (HFCs) |
| Replaced Provisions | Chapter-X, Sub-sections A.10 & A.11 of RBI (HFCs) Directions, 2025 |
| New Applicable Provisions | Chapter IIIA, Paragraphs 101A to 101ZA of RBI (NBFCs – Responsible Business Conduct) Directions, 2025 |
Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13492 | Date: 15.6.2026 | Type: amendment
Background
This amendment builds upon the Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Directions, 2025. It aims to introduce comprehensive instructions concerning the advertising, marketing, and sale of financial products and services by All India Financial Institutions (AIFIs). The amendment seeks to enhance customer protection by defining and prohibiting unfair practices.
Key Decision
The Reserve Bank of India has issued the Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Second Amendment Directions, 2026, which will come into effect from January 1, 2027. These directions modify the 2025 Directions by introducing new definitions and a new chapter on Advertising, Marketing, and Sale of Financial Products/Services.
| Aspect | Earlier | Now |
|---|---|---|
| Applicability | Primarily focused on Responsible Business Conduct. | Extends comprehensive instructions on advertising, marketing, and sale of financial products/services to All India Financial Institutions (AIFIs). |
| New Definitions | - | Introduces definitions for Compulsory bundling, Dark pattern, Direct Selling Agent (DSA) / Direct Marketing Agent (DMA), DSA / DMA sub-agent, Explicit consent, Mis-selling, and Third-party Product or Service (TPPS). |
| New Chapter | - | Inserts Chapter IIIA - Advertising, Marketing and Sale of Financial Products / Services by AIFIs, detailing policy requirements, engagement of DSAs/DMAs, consent aspects, and conduct during advertising and marketing. |
| Effective Date | N/A | January 1, 2027. |
Exam Relevance
Responsible Business Conduct: Mandates clear policies for advertising, marketing, and sales, including prohibiting dark patterns and compulsory bundling. Why it matters: Candidates need to understand the regulatory expectations for financial institutions to ensure fair practices and protect consumers from deceptive marketing and sales tactics.
Advertising and Marketing: Requires factual and clear promotional materials, disclosure of interest rates and fees, and obtaining explicit consent for promotional communications. Why it matters: Demonstrates the regulator's focus on transparency and customer consent in all marketing efforts by AIFIs.
Financial Products Sale: Defines and prohibits mis-selling, requiring suitability assessments even with customer consent and explicit consent for sales. Why it matters: Highlights the stringent requirements for product sales, emphasizing the need for appropriateness and informed decision-making by customers.
Compulsory Bundling: Explicitly defined as making one product/service conditional on another, and now prohibited under the broader definition of mis-selling. Why it matters: This is a key area of concern for consumer protection, ensuring customers are not forced into acquiring unwanted products.
Dark Patterns: Defined as deceptive design patterns that mislead users, and prohibited by the new directions. Why it matters: This addresses the growing concern of digital interfaces being used to manipulate consumer choices, requiring AIFIs to ensure user-friendly and transparent digital experiences.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Date of Issue | 15.6.2026 |
| Effective Date | January 1, 2027 |
| Applicable Entities | All India Financial Institutions (AIFIs) |
| Key Prohibitions | Compulsory bundling, Dark patterns, Mis-selling |
| Consent Requirement | Explicit consent required for sales and promotional communications |
| New Chapter Introduced | Chapter IIIA - Advertising, Marketing and Sale of Financial Products / Services by AIFIs |
| Key Definitions Added | Compulsory bundling, Dark pattern, Mis-selling, Explicit consent, etc. |
Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13491 | Date: 15.6.2026 | Type: amendment
Background
This circular amends the Reserve Bank of India (Rural Co-operative Banks – Responsible Business Conduct) Directions, 2025, to introduce comprehensive instructions on advertising, marketing, and sale of financial products/services by Rural Co-operative Banks (RCBs). These amendments aim to enhance responsible business conduct and protect customer interests.
Key Decision
The Reserve Bank of India, exercising powers under Sections 35A and 56 of the Banking Regulation Act, 1949, has issued these Amendment Directions, which will come into effect from January 1, 2027. The key amendments introduce new definitions and insert new sections related to responsible business conduct in advertising, marketing, and sale of financial products/services by RCBs.
| Aspect | Earlier | Now |
|---|---|---|
| Definition of Compulsory Bundling | Not explicitly defined. | Defined as the practice by an RCB of making the availment of one product/service conditional upon the availment of another product/service. |
| Definition of Dark Pattern | Not explicitly defined. | Defined as deceptive design patterns intended to mislead or trick users, subverting consumer autonomy and choice. |
| Definition of Mis-selling | Not explicitly defined with specific criteria. | Defined to include sale of unsuitable products, sale without complete/correct information, sale without explicit consent, and compulsory bundling. |
| Guidelines on Advertising, Marketing and Sale of Financial Products/Services | General responsible business conduct. | Comprehensive instructions covering policy, engagement of DSAs/DMAs, consent, advertising, and marketing conduct, applicable to RCBs, their employees, DSAs/DMAs, and third-party representatives. |
| Effective Date of New Directions | N/A | January 1, 2027. |
Exam Relevance
Responsible Business Conduct: Introduction of definitions for "Compulsory bundling", "Dark patterns", and "Mis-selling" specifically for Rural Co-operative Banks, alongside detailed guidelines on advertising, marketing, and consent mechanisms. Why it matters: This tests the understanding of regulatory nuances for different types of banks and the specific consumer protection measures being implemented. Financial Product Advertising: Strict guidelines on clarity, factual accuracy, disclosure of charges, and obtaining explicit consent for promotional communications. Why it matters: Understanding the permissible methods of advertising and the importance of transparency in financial product promotions is crucial. Customer Consent: Emphasis on "explicit consent" with specific requirements for obtaining and documenting it, including default 'No' options and clear enumeration of products. Why it matters: This highlights the growing importance of informed consent as a cornerstone of customer protection in financial services.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Source URL | https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13491 |
| Date of Issue | 15.6.2026 |
| Type | Amendment |
| Effective Date | January 1, 2027 |
| Applicable Entities | Rural Co-operative Banks (RCBs) |
| Governing Act | Banking Regulation Act, 1949 (Sections 35A and 56) |
| Key Additions | Definitions of Compulsory bundling, Dark pattern, Mis-selling; Guidelines on Advertising, Marketing, and Sale of Financial Products/Services. |
Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13490 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India (RBI) has issued comprehensive instructions on the advertising, marketing, and sale of financial products/services to Urban Co-operative Banks (UCBs) under the Reserve Bank of India (Urban Co-operative Banks – Responsible Business Conduct) Directions, 2025. This amendment aims to further strengthen responsible business conduct by introducing specific definitions and guidelines.
Key Decision
The RBI has amended the Reserve Bank of India (Urban Co-operative Banks – Responsible Business Conduct) Directions, 2025, effective from January 1, 2027. The key decisions involve inserting new definitions and a new chapter on Advertising, Marketing, and Sale of Financial Products/Services by UCBs.
| Aspect | Earlier | Now |
|---|---|---|
| Compulsory Bundling Definition | Not explicitly defined. | Defined as "the practice by a UCB of making availment of one product / service by a customer conditional upon availment of another product / service, whether own or third-party, offered by the UCB." |
| Dark Pattern Definition | Not explicitly defined. | Defined as "any practices or deceptive design pattern using user interface or user experience interactions on any platform that is designed to mislead or trick users to do something they originally did not intend or want to do, by subverting or impairing the consumer autonomy, decision making or choice, amounting to misleading advertisement or unfair trade practice or violation of consumer rights." |
| Direct Selling Agent (DSA) / Direct Marketing Agent (DMA) Definition | Not explicitly defined. | Defined as "an entity or individual (other than a UCB’s own employee) engaged by a UCB... to sell or market / promote / influence customers for purchase of its own or third-party product / service." |
| Explicit Consent Definition | Implied, but not precisely defined. | Defined as "a specific, informed and unambiguous indication of an individual’s choice, given through a duly recorded / documented statement or clear affirmative action, which indicates agreement to a specific action by or arrangement with a UCB." |
| Mis-selling Definition | Not explicitly defined. | Defined to include sale of a product/service that is not suitable or appropriate, without providing correct/complete information, without explicit consent, through compulsory bundling, or as defined by the financial sector regulator. |
| Third-Party Product or Service (TPPS) Definition | Not explicitly defined. | Defined as "a product or service offered by a UCB to its customers on behalf of a third-party product / service provider... after entering into an agency business or referral services arrangement." |
| Policy on Advertising, Marketing, and Sale | Not explicitly mandated. | UCBs must put in place a comprehensive policy covering suitability, feedback, customer compensation, and aspects related to DSAs/DMAs. |
| Engagement of DSAs/DMAs | Implicit. | UCBs must maintain and display an up-to-date list of DSAs/DMAs on their website. Employees and DSA/DMA sub-agents must possess requisite qualifications. |
| Identification of DSA/DMA Sub-agents | Not specified. | DSA/DMA sub-agents or TPPS Provider representatives within UCB premises must be clearly distinguishable from UCB employees with clear 'on person' identification. |
| Code of Conduct | Not explicitly mandated. | UCBs must put in place a Code of Conduct for employees, DSAs/DMAs, and their sub-agents. Undertakings must be obtained, and agreements must cover penal actions. |
| Consent Obtaining Process | Varied. | Consent must be explicit. For multiple products, each shall be enumerated with an option to choose. Consent and related records must be preserved for one year from cessation of the agreement. |
| Disclosure of Key Features | Varied. | Key features (fees, charges, risks, commitment, lock-in, exit terms) must be prominently disclosed. Prescribed formats like KFS or MITC must be used where applicable. |
| Default Consent Choice | Not specified. | The default choice for consent must be 'No' / 'I do not agree'. |
| Advertisement of TPPS | Not specified. | UCBs shall not advertise TPPS as their own and must clarify their role. |
| Promotional Materials | Varied. | Promotional materials must be clear, factual, disclose interest rates and fees/charges, and prominently display terms and conditions. |
| Promotional Communication Consent | Not specified. | Promotional communication/alerts shall only be sent if the customer has given explicit consent. |
| Unsubscribing from Services | Not specified. | The process for unsubscribing from services or promotional communication must be easy and simple. |
| Conduct of Employees/DSAs/DMAs | Implicit. | Upfront disclosure of fees/charges, communication of terms and conditions, adherence to approved communication modes, and specified timings for telephonic contacts and visits (09:00 to 19:00 hours, with exceptions for customer requests). |
Exam Relevance
Responsible Business Conduct: Introduction of definitions for Compulsory Bundling, Dark Patterns, Mis-selling, and mandating Explicit Consent. Why it matters: This emphasizes the RBI's focus on protecting customers from unfair practices by Urban Co-operative Banks during the sale of financial products, ensuring transparency and informed decision-making.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Source URL | https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13490 |
| Date | 15.6.2026 |
| Type | amendment |
| Effective Date | January 1, 2027 |
| Regulated Entities | Urban Co-operative Banks (UCBs) |
| Key Areas Covered | Advertising, Marketing, Sale of Financial Products/Services, Responsible Business Conduct |
| New Definitions Introduced | Compulsory bundling, Dark pattern, Direct Selling Agent (DSA) / Direct Marketing Agent (DMA), Explicit consent, Mis-selling, Third-party Product or Service (TPPS) |
| New Chapter Inserted | Chapter IV: Customer Guidance and Protection - D. Advertising, Marketing and Sale of Financial Products / Services by UCBs |
| Mandatory Policy Requirement | Comprehensive policy for advertising, marketing, and sale of financial products/services. |
| Consent Requirements | Explicit, informed, unambiguous, with clear options for multiple products and default choice as 'No'. |
| Disclosure Requirements | Prominent disclosure of key features, risks, and adherence to prescribed formats (KFS, MITC). |
| DSA/DMA Management | Empanelment, up-to-date listing on website, Code of Conduct, undertakings, and penal actions for violations. |
| Customer Interaction Timings (DSA/DMA) | Normal hours: 09:00 to 19:00 hours (exceptions for customer requests). |
Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13489 | Date: June 15, 2026 | Type: amendment
Background
The Reserve Bank of India (RBI) has issued these Amendment Directions to the Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Directions, 2025. These amendments aim to strengthen responsible business conduct by Regional Rural Banks (RRBs), particularly concerning the advertising, marketing, and sale of financial products and services. The previous directions laid a foundation for responsible practices, and this amendment introduces specific definitions and procedural requirements to enhance customer protection.
Key Decision
The RBI has issued the Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026, which will come into effect from January 1, 2027. These directions introduce new definitions and amend existing paragraphs of the 2025 Directions.
| Aspect | Earlier | Now |
|---|---|---|
| Compulsory Bundling Definition | Not explicitly defined. | Defined as "the practice by an RRB of making availment of one product / service by a customer conditional upon availment of another product / service, whether own or third-party, offered by the RRB." |
| Dark Pattern Definition | Not explicitly defined. | Defined as "any practices or deceptive design pattern using user interface or user experience interactions on any platform that is designed to mislead or trick users to do something they originally did not intend or want to do, by subverting or impairing the consumer autonomy, decision making or choice, amounting to misleading advertisement or unfair trade practice or violation of consumer rights." |
| Direct Selling Agent (DSA) / Direct Marketing Agent (DMA) Definition | Not explicitly defined. | Defined as "an entity or individual (other than an RRB’s own employee) engaged by an RRB... to sell or market / promote / influence customers for purchase of its own or third-party product / service." |
| DSA / DMA Sub-agent Definition | Not explicitly defined. | Defined as "an individual, engaged by a DSA / DMA, who is involved in selling / marketing related activities, on behalf of an RRB, at the point of customer interface." |
| Explicit Consent Definition | Implied requirements. | Defined as "a specific, informed and unambiguous indication of an individual’s choice, given through a duly recorded / documented statement or clear affirmative action, which indicates agreement to a specific action by or arrangement with an RRB." |
| Mis-selling Definition | Not explicitly defined. | Defined to include sale of unsuitable products, sale without complete/correct information, sale without explicit consent, compulsory bundling, and other acts defined by regulators. |
| Third-party Product or Service (TPPS) Definition | Not explicitly defined. | Defined as "a product or service offered by an RRB to its customers on behalf of a third-party product / service provider... after entering into an agency business or referral services arrangement." |
| Policy for Advertising, Marketing and Sale | General responsible business conduct. | Comprehensive policy mandated, covering suitability, feedback, compensation, and due diligence for DSAs/DMAs. |
| Engagement of DSAs/DMAs | General engagement. | Requires maintaining and displaying an up-to-date list of empanelled DSAs/DMAs on the website. |
| DSA/DMA Sub-agent Qualifications | General expectations. | Must possess requisite qualification/certification if prescribed. |
| Identification of Third-Party Representatives | General presence. | Must be distinguishable from RRB employees with clear 'on person' identification. |
| Code of Conduct for Sales and Marketing | Not explicitly detailed. | Mandatory Code of Conduct for RRBs' employees, DSAs/DMAs, and their sub-agents, with undertaking requirements and penal actions for violations. |
| Consent Requirements | General consent. | Explicit consent required through various documented methods. Each product/service must be enumerated, with an option to choose individually. Consent records to be preserved for one year after agreement cessation. |
| Disclosure of Key Features | General disclosure. | Prominent disclosure of key features, risks, financial commitment, lock-in, and exit terms. Use of prescribed formats like KFS or MITC where applicable. |
| User Interface Design for Consent | General process. | Process flow must prevent granting consent without reviewing terms and conditions. Default consent option must be 'No' / 'I do not agree'. |
| Advertising of Third-Party Products | General advertising. | RRBs shall not advertise TPPS as their own and must clarify their role. |
| Promotional Materials | General clarity. | Promotional materials must be clear, factual, and disclose interest rates and fees. Terms and conditions to be disclosed at all points of sale/digital channels. |
| Promotional Communication | General communication. | Promotional communication/alerts to be sent only with explicit customer consent. |
| Unsubscription Process | General unsubscribe. | Easy and simple process for unsubscribing from services or promotional communication. |
| Conduct of Employees and Agents | General conduct. | Upfront disclosure of fees/charges, communication of terms and conditions, approved communication modes, and prescribed hours for telephonic contacts/visits (09:00 to 19:00 hours), unless customer authorises otherwise. |
Exam Relevance
Responsible Business Conduct: The amendments introduce stringent definitions and requirements for compulsory bundling, dark patterns, mis-selling, and explicit consent. Why it matters: Candidates need to understand these new regulatory boundaries as they directly impact how financial products are marketed and sold by RRBs, highlighting the RBI's focus on consumer protection and fair practices.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
- Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 (15.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Effective Date | January 1, 2027 |
| Applicable Entities | Regional Rural Banks (RRBs) |
| Key Focus Areas | Advertising, Marketing, and Sale of Financial Products / Services |
| New Definitions Introduced | Compulsory Bundling, Dark Pattern, Direct Selling Agent (DSA) / Direct Marketing Agent (DMA), DSA / DMA Sub-agent, Explicit Consent, Mis-selling, Third-party Product or Service (TPPS) |
| Mandatory Policy Aspects | Comprehensive policy for advertising, marketing, and sale; due diligence for DSAs/DMAs |
| Consent Requirement | Explicit Consent (specific, informed, unambiguous) |
| Disclosure Requirements | Key features, risks, financial commitment, lock-in, exit terms |
| Advertising Restrictions | Cannot advertise TPPS as own; must clarify role |
| Promotional Communication | Requires explicit consent; easy unsubscribe process |
| Agent Conduct | Upfront disclosure, adherence to terms, approved communication, specific contact hours |
Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13545 | Date: 24.6.2026 | Type: amendment
Background
RBI consolidated responsible business conduct instructions for Payments Banks in the Reserve Bank of India (Payments Banks - Responsible Business Conduct) Directions, 2025. This Second Amendment Directions, 2026 adds revised instructions on limiting customer liability in fraudulent electronic banking transactions.
Key Decision
The amendment applies to electronic banking transactions undertaken by Payments Bank customers on or after January 1, 2027. It defines Card Present, Card Not Present, Electronic Banking Transaction, fraudulent EBT, customer negligence, and PB negligence, and places the burden of proving customer liability on the Payments Bank.
| Aspect | Earlier | Now |
|---|---|---|
| Liability framework | Existing responsible conduct directions applied without the revised fraudulent EBT liability chapter | A dedicated framework applies from January 1, 2027 |
| Proof of liability | Liability assessment could depend on case handling | Burden of proving customer liability lies on the Payments Bank |
| PB negligence | General service and security obligations | Customer gets zero liability where fraudulent EBT occurs due to PB negligence or deficiency |
| Third-party breach | Existing complaint handling rules | Customer gets zero liability if reported within five calendar days from occurrence |
| Customer negligence | Not separately detailed in this amendment context | Liability may arise where credentials are mishandled, warnings ignored, malicious apps downloaded, or contact details not updated |
Exam Relevance
Fraudulent EBT Liability: Payments Banks must classify complaints and prove customer liability. Why it matters: questions can test who bears the proof burden and when zero liability applies.
Effective Date: The amended framework applies from January 1, 2027. Why it matters: effective dates are common statement-based traps.
Reporting Window: For third-party breach, zero liability applies when the customer reports within five calendar days from occurrence. Why it matters: calendar-day wording can be confused with working-day rules.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13545 |
| RBI reference | RBI/2026-27/169; DOR.MCS.REC.No.132/01-01-034/2026-27 |
| Issued on | June 24, 2026 |
| Effective for transactions from | January 1, 2027 |
| Regulated entity | Payments Banks |
| Core topic | Customer liability in fraudulent electronic banking transactions |
| Key standard | PB bears burden of proving customer liability |
| Zero liability trigger | PB negligence/deficiency, or third-party breach reported within five calendar days |
Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13486 | Date: 15.6.2026 | Type: amendment
Background
The Reserve Bank of India has previously issued instructions on customer appropriateness and suitability, as well as related matters, to Small Finance Banks (SFBs) under the Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Directions, 2025. These existing instructions have been reviewed, leading to the issuance of comprehensive directions regarding the advertising, marketing, and sale of financial products/services to all SFBs.
Key Decision
The Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Second Amendment Directions, 2026 modify the Reserve Bank of India (Small Finance Banks – Responsible Business Conduct) Directions, 2025. These amendments will come into effect from January 1, 2027.
The key changes introduced include:
- Definition of Compulsory Bundling: A practice where an SFB makes the availment of one product/service conditional upon the availment of another product/service, whether it's the SFB's own or a third-party offering.
- Definition of Dark Pattern: Deceptive design patterns on user interfaces or user experiences intended to mislead or trick users into actions they did not originally intend, thereby impairing consumer autonomy.
- Definitions of Direct Selling Agent (DSA) / Direct Marketing Agent (DMA) and DSA / DMA sub-agent: Clarifies entities engaged by SFBs to sell or market products/services, including those engaged by DSAs/DMAs.
- Definition of Explicit Consent: A specific, informed, and unambiguous indication of a customer's choice, obtained through documented statements or clear affirmative actions.
- Definition of Mis-selling: Encompasses sales that are unsuitable, lack complete/correct information, occur without explicit consent, involve compulsory bundling, or fall under other definitions of mis-selling by the regulator.
- Definition of Third-Party Product or Service (TPPS): Products/services offered by an SFB on behalf of a third-party provider after entering into an agency or referral arrangement.
- New Chapter IV on Customer Guidance and Protection (Section F): Introduces detailed guidelines on Advertising, Marketing and Sale of Financial Products / Services by SFBs. This includes requirements for comprehensive policies, due diligence for DSAs/DMAs, clear identification of representatives, a Code of Conduct, and strict adherence to obtaining explicit consent.
- Consent Procedures: Explicit consent must be obtained for all products/services, with clear enumeration of each product/service when multiple are offered on a single form. Consent records must be preserved for one year after the cessation of the agreement.
- Disclosure Requirements: Key features, risks, financial commitments, lock-in conditions, and exit terms must be prominently disclosed to customers. Prescribed formats like Key Facts Statement (KFS) must be used where applicable.
- Default Consent: The default choice for consent in user interfaces must be 'No' / 'I do not agree'.
- Advertising and Marketing: SFBs cannot advertise TPPS as their own and must clarify their role. Promotional materials must be clear, factual, and disclose interest rates and fees. Promotional communications require explicit customer consent.
- Unsubscription: Processes for unsubscribing from services or promotional communications must be easy and simple.
- Conduct of Employees and Agents: Employees, DSAs/DMAs, and their sub-agents must make upfront disclosures of fees, interest rates, and terms and conditions.
| Aspect | Earlier | Now |
|---|---|---|
| Effective Date | N/A (New comprehensive directions) | January 1, 2027 |
| Scope of Directions | Instructions on customer appropriateness and suitability to SFBs. | Comprehensive instructions on advertising, marketing, and sale of financial products/services to all SFBs. |
| Definition of Compulsory Bundling | Not explicitly defined. | Defined as making availment of one product/service conditional upon availment of another product/service. |
| Definition of Dark Pattern | Not explicitly defined. | Defined as deceptive design patterns misleading users into unintended actions. |
| Definition of Mis-selling | Not explicitly defined in this context. | Defined to include unsuitable sales, incomplete/misleading information, sales without explicit consent, and compulsory bundling. |
| Explicit Consent | Implied or general consent practices might have been in place. | Mandates explicit consent obtained through documented statements, OTP-based approval, digitally recorded confirmation, or consent embedded in agreements. Default consent is 'No'. |
| DSA/DMA Engagement | Regulations might have been less specific or covered under broader outsourcing guidelines. | Detailed requirements for SFBs to maintain and display an up-to-date list of DSAs/DMAs, ensure requisite qualifications, provide clear identification for representatives, and implement a Code of Conduct. |
| TPPS Advertising | Not specifically addressed. | SFBs shall not advertise TPPS as their own and must clarify their role. |
| Promotional Communications | General guidelines may have existed. | Requires explicit customer consent to receive promotional communications. |
| Unsubscription | May not have been a specific mandated ease of process. | Mandates an easy and simple process for unsubscribing from services or promotional communications. |
Exam Relevance
Small Finance Banks (SFBs): The circular introduces detailed regulations on the advertising, marketing, and sale of financial products and services, including definitions of compulsory bundling and mis-selling, and mandates explicit consent. Why it matters: Candidates need to understand the enhanced customer protection measures being implemented by the RBI for SFBs, ensuring fair practices and preventing deceptive sales tactics. This is crucial for understanding the regulatory environment and compliance requirements for financial institutions.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026
- Key Facts: Responsible Business Conduct; Commercial Banks; Advertising and Marketing; Sale of Financial Products; Compulsory Bundling
- Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
- Key Facts: Regional Rural Banks; Undertaking of Financial Services; Agency Business; Referral Services; Responsible Business Conduct
- Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2025 (The circular amends the 2025 Directions)
- Key Facts: Small Finance Banks; Undertaking of Financial Services; Agency Business; Referral Services; Responsible Business Conduct
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Second Amendment Directions, 2026 |
| Effective Date | January 1, 2027 |
| Regulated Entities | Small Finance Banks (SFBs) |
| Key Focus Areas | Advertising, Marketing, and Sale of Financial Products/Services, Responsible Business Conduct, Customer Protection |
| New Definitions Introduced | Compulsory Bundling, Dark Pattern, DSA/DMA, DSA/DMA Sub-agent, Explicit Consent, Mis-selling, Third-Party Product/Service |
| Mandatory Practice | Obtaining Explicit Consent for all products/services. |
| Prohibited Practice | Compulsory bundling of products/services. Advertising TPPS as own product. |
| Compliance Requirement | Comprehensive policy for advertising/marketing, Code of Conduct, clear disclosure of product features and risks. |
Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13510 | Date: 17.6.2026 | Type: rate_change
Background
Previously, the Reserve Bank of India (RBI) had established certain interest rate ceilings on deposits for Small Finance Banks (SFBs). These directions, dated November 28, 2025, outlined specific regulations for both Rupee Deposits of Non-Residents (NRE/NRO) and Foreign Currency Deposits (FCNR(B)).
Key Decision
The RBI has decided to temporarily withdraw the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates on NRE deposits of 3 year and above tenors. This withdrawal is effective from June 17, 2026, until September 30, 2026. This applies to both fresh deposits and those renewed upon maturity.
| Aspect | Earlier | Now |
|---|---|---|
| Interest Rate Ceiling on fresh FCNR(B) deposits (3-5 year tenors) | Applicable ceiling as per existing Directions. | Temporarily withdrawn until September 30, 2026. |
| Restriction on Interest Rates on NRE deposits (3 year and above tenors) | Interest rates shall not be higher than those offered by the bank on comparable domestic rupee term deposits. | Temporarily withdrawn until September 30, 2026. |
Exam Relevance
Interest Rate on Deposits: Temporary withdrawal of interest rate ceilings on FCNR(B) and NRE deposits for Small Finance Banks. Why it matters: Understanding temporary regulatory changes in deposit rates is crucial for assessing the financial market environment and the operational flexibility granted to banking entities.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
- Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 (17.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Amendment Directions, 2026 |
| Effective Date | 17.6.2026 |
| Expiry Date of Temporary Measures | 30.9.2026 |
| Affected Deposits | Fresh FCNR(B) deposits (3-5 year tenors) and NRE deposits (3 year and above tenors) |
| Regulatory Body | Reserve Bank of India |
| Regulated Entities | Small Finance Banks |
Reserve Bank of India (All India Financial Institutions – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13504 | Date: 16.6.2026 | Type: amendment
Background
This circular amends the Reserve Bank of India (All India Financial Institutions – Prudential Norms on Capital Adequacy) Directions, 2025. It refers to the National Credit Guarantee Trustee Company (NCGTC) circular dated May 08, 2026, regarding the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Government of India.
Key Decision
A new paragraph, 29A, is inserted into the Principal Directions. This new paragraph deals with the treatment of exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 for capital adequacy purposes.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for ECLGS 5.0 guaranteed exposures | As per extant guidelines | Zero percent risk weight to the extent of 75% of the guaranteed portion, provided the settlement amount is expected within thirty days from invocation. The remaining exposure attracts risk weight as per extant guidelines. |
Exam Relevance
Capital Adequacy: Treatment of exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. Why it matters: This amendment impacts how All India Financial Institutions calculate their risk-weighted assets, directly affecting their capital adequacy ratios. Understanding the specific risk weighting for guaranteed portions is crucial.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026 (16.6.2026, amendment)
- Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026 (16.6.2026, amendment)
- Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 (16.6.2026, amendment)
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (All India Financial Institutions – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 |
| RBI Circular Number | RBI/2026-27/133 DOR.STR.REC.112/21-01-002/2026-27 |
| Effective Date | Immediate |
| Amendment Type | Third Amendment |
| Scheme Covered | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Risk Weight (Guaranteed Portion) | Zero percent up to 75% (settlement within 30 days) |
Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13505 | Date: 16.6.2026 | Type: amendment
Background
This amendment modifies the Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Directions, 2025. It is issued in the context of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Government of India and detailed in a circular from the National Credit Guarantee Trustee Company (NCGTC) dated May 8, 2026. The RBI is exercising powers under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
Key Decision
Urban Co-operative Banks will now have specific risk weighting for exposures guaranteed under ECLGS 5.0.
| Aspect | Earlier | Now |
|---|---|---|
| Risk Weight for ECLGS 5.0 guaranteed exposures | As per extant guidelines | Zero percent for 75% of the guaranteed portion, provided settlement is expected within thirty days of invocation. Remaining exposure attracts risk weight as per extant guidelines. |
Exam Relevance
Capital Adequacy: Amendments to prudential norms regarding the treatment of exposures guaranteed under ECLGS 5.0 for Urban Co-operative Banks. Why it matters: Understanding how government-backed schemes impact capital requirements is crucial for banking sector exams, particularly concerning risk weights and their implications for a bank's financial health.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026
- Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
- Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Summary Table
| Parameter | Value |
|---|---|
| Scheme | Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 |
| Affected Entities | Urban Co-operative Banks |
| Applicable Guarantees | Exposures guaranteed under ECLGS 5.0 |
| Risk Weight (Guaranteed Portion) | Zero percent (for 75% of the guaranteed amount) |
| Condition for Zero Risk Weight | Settlement expected within 30 days from invocation |
| Effective Date | With immediate effect |
Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Second Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13493 | Date: 15.6.2026 | Type: amendment
Background
Previously, instructions on customer appropriateness and suitability for Non-Banking Financial Companies (NBFCs) were issued. This amendment expands and consolidates these instructions into comprehensive guidelines on advertising, marketing, and the sale of financial products and services by NBFCs.
Key Decision
The Reserve Bank of India (RBI) has issued amendments to the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. These new directions aim to enhance responsible business conduct by NBFCs in their advertising, marketing, and sale of financial products and services.
Effective Date: January 1, 2027.
Applicability: These amendments apply to all NBFCs, except for Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs not having any customer interface. Specific NBFC types like NBFC-P2P, Mortgage Guarantee Companies, and Standalone Primary Dealers will also have Chapter IIIA (Advertising, Marketing and Sale of Financial Products / Services) additionally applicable to them.
Key Changes:
- Compulsory Bundling: Defined as making the availment of one product/service conditional upon the availment of another, whether own or third-party.
- Dark Pattern: Defined as deceptive design patterns intended to mislead or trick users, subverting consumer autonomy.
- Direct Selling Agent (DSA) / Direct Marketing Agent (DMA): Definitions and responsibilities for entities and individuals engaged by NBFCs for selling/marketing are introduced.
- Mis-selling: Expanded definition to include sales not suitable/appropriate to customer profile (despite consent), incomplete/misleading information, sales without explicit consent, compulsory bundling, and other regulator-defined elements.
- Explicit Consent: Defined as a specific, informed, and unambiguous indication of choice through recorded statement or affirmative action.
- Third-party Product or Service (TPPS): Definition for products/services offered by NBFCs on behalf of third-party providers.
- Recovery Agents: Modified instructions on their conduct and training.
- New Chapter IIIA: Introduced comprehensive guidelines on advertising, marketing, and sale of financial products/services, including:
- NBFC policy requirements for product suitability, feedback, and customer compensation.
- Due diligence, training, and control mechanisms for DSAs/DMAs.
- Requirement to display an up-to-date list of DSAs/DMAs on their website.
- Clear identification of DSA/DMA sub-agents and TPPS representatives within NBFC premises.
- Code of Conduct for sale and marketing applicable to employees, DSAs/DMAs, and TPPS representatives.
- Mandatory explicit consent for all products/services, with clear enumeration and individual choice for bundled offers.
- Prominent disclosure of key product features, risks, and terms, using prescribed formats where available (e.g., KFS, MITC).
- Default consent option to be 'No' / 'I do not agree'.
| Aspect | Earlier | Now |
|---|---|---|
| Comprehensive Guidelines for NBFCs | Scattered instructions on customer appropriateness and suitability. | Consolidated and comprehensive directions on advertising, marketing, and sale of financial products/services, effective January 1, 2027. |
| Third-Party Product Sales by NBFCs | Implicitly covered or not explicitly defined. | Explicitly defined and regulated under TPPS with specific guidelines for agency arrangements. |
| Use of DSAs/DMAs | Less defined or consistent oversight. | Detailed requirements for NBFCs regarding eligibility, due diligence, training, display of list, and Code of Conduct for DSAs/DMAs and sub-agents. |
| Customer Consent | May have been less stringent or clearly defined. | Emphasis on explicit consent, clearly enumerated for multiple products, with a default option of 'No' / 'I do not agree'. |
| Mis-selling | General understanding of unfair practices. | Specific definition including suitability, information accuracy, consent, and bundling, with implications for customer compensation. |
Exam Relevance
NBFCs: The circular introduces stringent Responsible Business Conduct guidelines for NBFCs in their Advertising, Marketing, and Sale of Financial Products. Why it matters: Candidates need to understand the updated regulatory framework for NBFCs concerning customer protection, transparency, and ethical sales practices, especially concerning explicit consent, mis-selling, and the use of Direct Selling Agents. The introduction of dark patterns as a prohibited practice is also a key takeaway.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026
- Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Second Amendment Directions, 2026
- Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026
Summary Table
| Parameter | Value |
|---|---|
| Circular Title | Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Second Amendment Directions, 2026 |
| Effective Date | January 1, 2027 |
| Applicable Entities | All NBFCs (excluding Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, NBFCs not having customer interface), and additionally NBFC-P2P, Mortgage Guarantee Company, Standalone Primary Dealer for Chapter IIIA. |
| Key Additions/Modifications | Definitions for Compulsory bundling, Dark pattern, DSA/DMA, Mis-selling, Explicit consent, TPPS. New Chapter IIIA on Advertising, Marketing, and Sale. Enhanced Code of Conduct for Recovery Agents. |
| Emphasis Areas | Explicit consent, suitability and appropriateness, transparency in advertising/marketing, due diligence of agents, clear identification of third-party representatives, prevention of mis-selling and dark patterns. |
| Action on DSAs/DMAs | Mandatory website listing, training, undertaking to abide by Code of Conduct, penal action for violations. |
| Customer Consent Process | Explicit, specific, informed, unambiguous. Each product/service to be enumerated for multiple product consent. Default consent option: 'No' / 'I do not agree'. |
| Disclosure Requirements | Prominent disclosure of key features (fees, charges, interest, risks, commitment, lock-in, exit terms), use of prescribed formats like KFS/MITC where applicable. |
| Regulatory Power Exercised | Sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934. |
Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13516 | Date: June 19, 2026 | Type: rate_change
Background
RBI has amended the Commercial Banks CRR/SLR framework to support mobilisation of longer-tenor non-resident rupee deposits. The circular modifies the relevant 2025 Directions and adds a temporary reserve-maintenance carve-out for eligible NRE term deposits.
Key Decision
Fresh or renewed NRE term deposits of tenor of three years or more mobilized between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR and SLR. The CRR exemption applies from the reporting fortnight beginning July 16, 2026, based on NDTL as on June 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Reserve treatment | Eligible deposits generally remained within the normal reserve base. | Eligible fresh or renewed long-tenor NRE deposits get CRR and SLR exemption. |
| Deposit tenor | No special carve-out for this 2026 mobilisation window. | Minimum tenor must be three years or more. |
| Time window | No temporary window applied. | Deposits mobilized from June 19, 2026 to September 30, 2026 qualify. |
| Transfers | NRO-to-NRE transfers could be confused with eligible mobilisation. | NRO-to-NRE transfers do not qualify. |
Exam Relevance
Reserve requirements: This amendment links CRR/SLR treatment with deposit tenor, account type and mobilisation period. Why it matters: Questions can test the exact window, the three-year tenor condition, the July 16, 2026 reporting-fortnight start, and the exclusion of NRO-to-NRE transfers.
Summary Table
| Parameter | Value |
|---|---|
| Regulated entity | Commercial Banks |
| Circular number | RBI/2026-27/145 |
| Eligible deposit | Fresh or renewed NRE term deposit |
| Minimum tenor | Three years or more |
| Mobilisation window | June 19, 2026 to September 30, 2026 |
| CRR start point | Reporting fortnight beginning July 16, 2026 |
| NDTL reference date | June 30, 2026 |
| Excluded transfer | NRO to NRE transfer |
| Inserted paragraph | 20(9) |
| Form A insertion | VIII.8 |
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13517 | Date: June 19, 2026 | Type: rate_change
Background
RBI has amended the Small Finance Banks CRR/SLR framework to support mobilisation of longer-tenor non-resident rupee deposits. The circular modifies the relevant 2025 Directions and adds a temporary reserve-maintenance carve-out for eligible NRE term deposits.
Key Decision
Fresh or renewed NRE term deposits of tenor of three years or more mobilized between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR and SLR. The CRR exemption applies from the reporting fortnight beginning July 16, 2026, based on NDTL as on June 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Reserve treatment | Eligible deposits generally remained within the normal reserve base. | Eligible fresh or renewed long-tenor NRE deposits get CRR and SLR exemption. |
| Deposit tenor | No special carve-out for this 2026 mobilisation window. | Minimum tenor must be three years or more. |
| Time window | No temporary window applied. | Deposits mobilized from June 19, 2026 to September 30, 2026 qualify. |
| Transfers | NRO-to-NRE transfers could be confused with eligible mobilisation. | NRO-to-NRE transfers do not qualify. |
Exam Relevance
Reserve requirements: This amendment links CRR/SLR treatment with deposit tenor, account type and mobilisation period. Why it matters: Questions can test the exact window, the three-year tenor condition, the July 16, 2026 reporting-fortnight start, and the exclusion of NRO-to-NRE transfers.
Summary Table
| Parameter | Value |
|---|---|
| Regulated entity | Small Finance Banks |
| Circular number | RBI/2026-27/146 |
| Eligible deposit | Fresh or renewed NRE term deposit |
| Minimum tenor | Three years or more |
| Mobilisation window | June 19, 2026 to September 30, 2026 |
| CRR start point | Reporting fortnight beginning July 16, 2026 |
| NDTL reference date | June 30, 2026 |
| Excluded transfer | NRO to NRE transfer |
| Inserted paragraph | 20(7) |
| Form A insertion | VIII.8 |
Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13518 | Date: June 19, 2026 | Type: rate_change
Background
RBI has amended the Urban Co-operative Banks CRR/SLR framework to support mobilisation of longer-tenor non-resident rupee deposits. The circular modifies the relevant 2025 Directions and adds a temporary reserve-maintenance carve-out for eligible NRE term deposits.
Key Decision
Fresh or renewed NRE term deposits of tenor of three years or more mobilized between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR and SLR. The CRR exemption applies from the reporting fortnight beginning July 16, 2026, based on NDTL as on June 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Reserve treatment | Eligible deposits generally remained within the normal reserve base. | Eligible fresh or renewed long-tenor NRE deposits get CRR and SLR exemption. |
| Deposit tenor | No special carve-out for this 2026 mobilisation window. | Minimum tenor must be three years or more. |
| Time window | No temporary window applied. | Deposits mobilized from June 19, 2026 to September 30, 2026 qualify. |
| Transfers | NRO-to-NRE transfers could be confused with eligible mobilisation. | NRO-to-NRE transfers do not qualify. |
Exam Relevance
Reserve requirements: This amendment links CRR/SLR treatment with deposit tenor, account type and mobilisation period. Why it matters: Questions can test the exact window, the three-year tenor condition, the July 16, 2026 reporting-fortnight start, and the exclusion of NRO-to-NRE transfers.
Summary Table
| Parameter | Value |
|---|---|
| Regulated entity | Urban Co-operative Banks |
| Circular number | RBI/2026-27/147 |
| Eligible deposit | Fresh or renewed NRE term deposit |
| Minimum tenor | Three years or more |
| Mobilisation window | June 19, 2026 to September 30, 2026 |
| CRR start point | Reporting fortnight beginning July 16, 2026 |
| NDTL reference date | June 30, 2026 |
| Excluded transfer | NRO to NRE transfer |
| Inserted paragraph | 21(6) |
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13519 | Date: June 19, 2026 | Type: rate_change
Background
RBI has amended the Rural Co-operative Banks CRR/SLR framework to support mobilisation of longer-tenor non-resident rupee deposits. The circular modifies the relevant 2025 Directions and adds a temporary reserve-maintenance carve-out for eligible NRE term deposits.
Key Decision
Fresh or renewed NRE term deposits of tenor of three years or more mobilized between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR and SLR. The CRR exemption applies from the reporting fortnight beginning July 16, 2026, based on NDTL as on June 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Reserve treatment | Eligible deposits generally remained within the normal reserve base. | Eligible fresh or renewed long-tenor NRE deposits get CRR and SLR exemption. |
| Deposit tenor | No special carve-out for this 2026 mobilisation window. | Minimum tenor must be three years or more. |
| Time window | No temporary window applied. | Deposits mobilized from June 19, 2026 to September 30, 2026 qualify. |
| Transfers | NRO-to-NRE transfers could be confused with eligible mobilisation. | NRO-to-NRE transfers do not qualify. |
Exam Relevance
Reserve requirements: This amendment links CRR/SLR treatment with deposit tenor, account type and mobilisation period. Why it matters: Questions can test the exact window, the three-year tenor condition, the July 16, 2026 reporting-fortnight start, and the exclusion of NRO-to-NRE transfers.
Summary Table
| Parameter | Value |
|---|---|
| Regulated entity | Rural Co-operative Banks |
| Circular number | RBI/2026-27/148 |
| Eligible deposit | Fresh or renewed NRE term deposit |
| Minimum tenor | Three years or more |
| Mobilisation window | June 19, 2026 to September 30, 2026 |
| CRR start point | Reporting fortnight beginning July 16, 2026 |
| NDTL reference date | June 30, 2026 |
| Excluded transfer | NRO to NRE transfer |
| Inserted paragraph | 21(6) |
Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13520 | Date: June 19, 2026 | Type: rate_change
Background
RBI has amended the Regional Rural Banks CRR/SLR framework to support mobilisation of longer-tenor non-resident rupee deposits. The circular modifies the relevant 2025 Directions and adds a temporary reserve-maintenance carve-out for eligible NRE term deposits.
Key Decision
Fresh or renewed NRE term deposits of tenor of three years or more mobilized between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR and SLR. The CRR exemption applies from the reporting fortnight beginning July 16, 2026, based on NDTL as on June 30, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Reserve treatment | Eligible deposits generally remained within the normal reserve base. | Eligible fresh or renewed long-tenor NRE deposits get CRR and SLR exemption. |
| Deposit tenor | No special carve-out for this 2026 mobilisation window. | Minimum tenor must be three years or more. |
| Time window | No temporary window applied. | Deposits mobilized from June 19, 2026 to September 30, 2026 qualify. |
| Transfers | NRO-to-NRE transfers could be confused with eligible mobilisation. | NRO-to-NRE transfers do not qualify. |
Exam Relevance
Reserve requirements: This amendment links CRR/SLR treatment with deposit tenor, account type and mobilisation period. Why it matters: Questions can test the exact window, the three-year tenor condition, the July 16, 2026 reporting-fortnight start, and the exclusion of NRO-to-NRE transfers.
Summary Table
| Parameter | Value |
|---|---|
| Regulated entity | Regional Rural Banks |
| Circular number | RBI/2026-27/149 |
| Eligible deposit | Fresh or renewed NRE term deposit |
| Minimum tenor | Three years or more |
| Mobilisation window | June 19, 2026 to September 30, 2026 |
| CRR start point | Reporting fortnight beginning July 16, 2026 |
| NDTL reference date | June 30, 2026 |
| Excluded transfer | NRO to NRE transfer |
| Inserted paragraph | 20(6) |
| Form A insertion | VIII.8 |
Reporting of FCNR (B) Deposits, ECB and OFCB mobilized under Reserve Bank’s Swap Facility
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13515 | Date: June 19, 2026 | Type: guideline
Background
RBI had announced swap facilities for FCNR(B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings on June 8, 2026. This circular operationalises reporting by AD Category-I banks for mobilisation under those facilities.
Key Decision
All AD Category-I banks must submit daily data on FCNR(B) deposits, ECBs and OFCBs mobilized under the swap facilities by 6 p.m. every day. NIL statements are required when there are no transactions, except on Saturdays and holidays.
| Aspect | Earlier | Now |
|---|---|---|
| Swap facility reporting | Facility circulars existed without this consolidated daily reporting instruction. | Daily submission by 6 p.m. is required. |
| Instruments covered | FCNR(B), ECB and OFCB mobilisation under swap facilities needed tracking. | All three are covered through specific annex formats and RBI email channels. |
| Backlog data | Data from facility launch was not yet reported under this instruction. | Data from June 8, 2026 until issuance must be submitted with the first due date on June 22, 2026. |
Exam Relevance
External sector reporting: This circular connects swap facilities with operational compliance by AD Category-I banks. Why it matters: Questions can test the 6 p.m. daily deadline, instruments covered, NIL statement rule, first catch-up reporting date and FEMA authority.
Summary Table
| Parameter | Value |
|---|---|
| Reporting entity | AD Category-I banks |
| Instruments | FCNR(B) deposits, ECBs and OFCBs |
| Daily deadline | 6 p.m. |
| Backlog period starts | June 8, 2026 |
| First catch-up due date | June 22, 2026 |
| NIL statement | Required except Saturdays and holidays |
| Legal basis | Sections 10(4), 11(1), 11(2) of FEMA, 1999 |
Lead Bank Scheme
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13521 | Date: June 19, 2026 | Type: guideline
Background
The Lead Bank Scheme (LBS) was introduced by RBI in December 1969 to coordinate banks, government agencies, rural development institutions and other stakeholders for priority sector credit and rural development. This circular follows a comprehensive review of the scheme and states that the revised guidelines supersede all earlier RBI instructions on LBS, including the earlier master circular reference dated April 01, 2025.
Key Decision
RBI issued a consolidated revised LBS framework covering Lead Banks, Lead District Managers, District Development Managers, RBI Lead District Officers, BLBC, DCC, DLRC, SLBC, credit planning, CD ratio monitoring, banking penetration, EDDPE, capacity building and SLBC website disclosure.
| Aspect | Earlier | Now |
|---|---|---|
| Instruction base | Earlier LBS master circulars and scattered RBI instructions applied. | A revised consolidated LBS guideline issued on June 19, 2026 supersedes earlier instructions. |
| BLBC meetings | General quarterly review framework. | BLBC meetings should be held quarterly, with North-Eastern region flexibility of at least twice per year. |
| Meeting timelines | Follow-up practices varied across fora. | BLBC meetings should be conducted within 60 days of quarter-end and minutes circulated within 10 days. |
| CD ratio monitoring | CD ratio was monitored across banks and districts. | Districts with CD ratio 40-60% are monitored by DCC; districts below 40% with ACP achievement below 100% need Special Sub-Committees; below 20% are special category districts. |
| Digital payments | EDDPE existed as a digital payments deepening programme. | SLBCs / UTLBCs must cover all districts fully under EDDPE and set timelines for milestones. |
| SLBC website | SLBC websites carried LBS and state-level information. | SLBC websites must be updated regularly, at least on a quarterly basis. |
Exam Relevance
Lead Bank Scheme governance: The circular is important for questions on rural credit coordination, district-level banking fora and financial inclusion. Why it matters: It gives exact facts such as December 1969, quarterly BLBC meetings, 60-day meeting timeline, 10-day minutes circulation, 40%, 20%, and 100% CD-ratio / ACP thresholds.
Related Previous Circulars
- Formation of new district in the State of Assam – Assignment of Lead Bank Responsibility (3.6.2026, notification) — connected to LBS because district-wise Lead Bank responsibility is part of the scheme.
Summary Table
| Parameter | Value |
|---|---|
| Circular number | RBI/2026-27/150 |
| Department | Financial Inclusion and Development Department |
| Date | June 19, 2026 |
| Scheme introduced | December 1969 |
| Main objective | Priority sector credit flow and financial inclusion |
| Key institutions | Lead Bank, LDM, DDM, LDO, SLBC Convenor Bank |
| Main fora | BLBC, DCC, DLRC, SLBC |
| BLBC frequency | Quarterly; North-Eastern region at least twice per year |
| BLBC timeline | Within 60 days of quarter-end |
| Minutes circulation | Within 10 days |
| CD ratio watch band | 40-60% monitored by DCC |
| Low CD ratio trigger | Below 40% plus ACP achievement below 100% |
| Special category CD ratio | Below 20% |
| SLBC website update | At least quarterly |
Reserve Bank of India (Small Finance Banks – Credit Facilities) Third Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13527 | Date: June 23, 2026 | Type: amendment
Background
RBI had already allowed operation of pre-sanctioned credit lines through UPI, with applicability to Small Finance Banks from February 12, 2025. This amendment brings such payment-instrument-linked credit facilities clearly inside the prudential framework of the Small Finance Banks Credit Facilities Directions, 2025.
Key Decision
RBI inserted a new Chapter IIA on credit facilities linked to specific payment instruments. The core rule is that the prudential treatment of the underlying credit facility, including UPI-linked pre-sanctioned credit lines, is determined by the nature of the credit facility and not by the payment mode, channel or technology used for disbursement.
| Aspect | Earlier | Now |
|---|---|---|
| Dedicated chapter | No separate Chapter IIA for payment-instrument-linked credit facilities. | New Chapter IIA inserted after Chapter II. |
| UPI-linked credit line treatment | Could be confused with payment-channel treatment. | Treated according to the underlying credit facility under applicable prudential norms. |
| Credit policy | Product linkage needed clearer internal policy treatment. | Terms and conditions must be included in the bank's credit policy. |
| Eligible facilities | Payment arrangement could create ambiguity. | Only credit facilities otherwise permitted under extant regulations can be offered. |
Exam Relevance
UPI-linked credit regulation: The amendment is important because it separates the payment instrument from the prudential nature of the loan. Why it matters: Questions can test Chapter IIA, February 12, 2025, the underlying-credit principle, and the requirement to include product terms in the bank's credit policy.
Related Previous Circulars
- Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026 (10.6.2026, policy_change) — dealt with SFB credit-facility changes for infrastructure trust lending, while this circular deals with payment-instrument-linked credit.
Summary Table
| Parameter | Value |
|---|---|
| Circular number | RBI/2026-27/151 |
| Regulated entity | Small Finance Banks |
| Directions amended | Small Finance Banks – Credit Facilities Directions, 2025 |
| Inserted chapter | Chapter IIA |
| Main subject | Credit facilities linked to specific payment instruments |
| UPI credit-line reference | Circular dated September 04, 2023 |
| SFB applicability reference | February 12, 2025 |
| Legal basis | Sections 21 and 35A of the Banking Regulation Act, 1949 |
| Effective date | Immediate effect |
Reserve Bank of India (Commercial Banks – Credit Facilities) Fourth Amendment Directions, 2026
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13528 | Date: June 23, 2026 | Type: amendment
Background
RBI's circular dated September 04, 2023 permitted operation of pre-sanctioned credit lines through UPI with prior customer consent. This amendment aligns commercial-bank credit directions with that framework and ensures that payment-channel innovation does not change prudential treatment.
Key Decision
A new Chapter IIA has been inserted after Chapter II of the Commercial Banks Credit Facilities Directions, 2025. It clarifies that even when a credit facility is delivered through UPI or a specific payment instrument, its prudential treatment is decided by the nature of the underlying credit facility.
| Aspect | Earlier | Now |
|---|---|---|
| Payment-linked credit chapter | No dedicated Chapter IIA. | New Chapter IIA inserted. |
| Basis of prudential treatment | Could be confused with mode, channel or technology of delivery. | Based solely on the underlying credit facility. |
| Credit policy | Specific payment-mode linkage needed clearer policy treatment. | Terms and conditions must be included in the bank's credit policy. |
| Permissible products | Ambiguity possible around payment arrangements. | Only credit facilities otherwise permitted under extant regulations can be offered. |
Exam Relevance
Commercial-bank credit products: The amendment is a direct link between UPI credit lines and prudential regulation. Why it matters: Questions can test Chapter IIA, September 04, 2023, the underlying-credit principle, and why payment mode does not decide prudential treatment.
Related Previous Circulars
- Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 (10.6.2026, policy_change) — changed commercial-bank credit-facility rules for REIT/InvIT lending, while this circular covers payment-instrument-linked credit.
Summary Table
| Parameter | Value |
|---|---|
| Circular number | RBI/2026-27/152 |
| Regulated entity | Commercial Banks |
| Directions amended | Commercial Banks – Credit Facilities Directions, 2025 |
| Inserted chapter | Chapter IIA |
| Main subject | Credit facilities linked to specific payment instruments |
| UPI credit-line reference | September 04, 2023 |
| Legal basis | Sections 21 and 35A of the Banking Regulation Act, 1949 |
| Effective date | Immediate from issuance |
Open positions of Authorised Dealer Category-I banks
Source: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13529 | Date: June 23, 2026 | Type: guideline
Background
This circular is issued in partial modification of A.P. (DIR Series) Circular No. 13 dated June 8, 2026 on NOP-INR position of AD Category-I banks. It also refers to the swap-facility circulars dated June 8, 2026 for FCNR(B) deposits, External Commercial Borrowings, and Overseas Foreign Currency Borrowings. This circular supersedes NOP-INR position of Authorised Dealer Category-I banks for the limited point on exclusion of hedged swap-facility positions.
Key Decision
AD Category-I banks shall exclude positions arising out of hedged transactions related to FCNR(B) deposits, ECB and OFCB raised under the specified RBI swap-facility circulars while computing the net overnight open position in terms of the Risk Management and Inter-Bank Dealings Master Direction.
| Aspect | Earlier | Now |
|---|---|---|
| Base NOP-INR instruction | Circular No. 13 dated June 8, 2026 governed NOP-INR position. | Circular No. 16 dated June 23, 2026 partially modifies it. |
| Swap-facility positions | Treatment of hedged positions needed explicit clarification. | Hedged positions linked to eligible FCNR(B), ECB and OFCB swap-facility mobilisation are excluded. |
| Compliance reference | Banks still had to follow the broader NOP-INR framework. | Banks must ensure compliance with A.P. (DIR Series) Circular No. 24 dated March 27, 2026. |
Exam Relevance
Forex risk management: This circular is important for net overnight open position computation by AD Category-I banks. Why it matters: Questions can test Circular No. 16, June 23, 2026, the three covered instruments, the March 27, 2026 compliance reference, and FEMA sections 10(4), 11(1), 11(2).
Related Previous Circulars
- NOP-INR position of Authorised Dealer Category-I banks (08.6.2026, guideline) — this circular is the direct partial modification of that earlier instruction.
- Reporting of FCNR (B) Deposits, ECB and OFCB mobilized under Reserve Bank’s Swap Facility (19.6.2026, guideline) — related operational reporting for the same swap-facility mobilisation.
Summary Table
| Parameter | Value |
|---|---|
| Circular number | RBI/2026-27/153 / A.P. (DIR Series) Circular No. 16 |
| Entity covered | Authorised Dealer Category-I banks |
| Earlier circular modified | A.P. (DIR Series) Circular No. 13 dated June 8, 2026 |
| Instruments covered | FCNR(B) deposits, ECB, OFCB |
| Position treatment | Exclude eligible hedged swap-facility positions from NOP-INR computation |
| Compliance reference | A.P. (DIR Series) Circular No. 24 dated March 27, 2026 |
| Master direction | Risk Management and Inter-Bank Dealings dated July 05, 2016 |
| Legal basis | FEMA sections 10(4), 11(1), 11(2) |
Review of Circulars issued under Foreign Exchange Management Act, 1999 (FEMA)
Source: RBI Circular | Date: 24.6.2026 | Type: notification
Background
RBI issued this update through the Foreign Exchange Department. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- The circulars, as listed at Annex , that have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives, are being withdrawn.
- The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
- Aditya Gaiha) Chief General Manager-In-Charge 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | The circulars, as listed at Annex , that have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives, are being withdrawn. |
Exam Relevance
Review: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13551 |
| Issue Date | 24.6.2026 |
| Department | Foreign Exchange Department |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | The circulars, as listed at Annex , that have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives, are being withdrawn. |
| Fact 3 | The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. |
Modification of Returns / Reporting requirements under FEMA, 1999
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Foreign Exchange Department. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- (DIR Series) Circular No.17 June 24, 2026 To All Authorised Persons Madam / Sir, Modification of Returns / Reporting requirements under FEMA, 1999 Attention of Authorised Persons is invited to the provisions contained in the Foreign Exchang
- On a review, it has been decided to rationalise certain reporting requirements, and prescribe/modify reporting formats pursuant to the Foreign Exchange Management (Authorised Persons) Regulations, 2026.
- The formats for submission of various returns are provided in the Annex to this circular.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | (DIR Series) Circular No.17 June 24, 2026 To All Authorised Persons Madam / Sir, Modification of Returns / Reporting requirements under FEMA, 1999 Attention of Authorised Persons is invited to the provisions contained in the Foreign Exchang |
Exam Relevance
Modification: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13550 |
| Issue Date | 24.6.2026 |
| Department | Foreign Exchange Department |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | (DIR Series) Circular No.17 June 24, 2026 To All Authorised Persons Madam / Sir, Modification of Returns / Reporting requirements under FEMA, 1999 Attention of Authorised Persons is invited to the provisions contained in the Foreign Exchang |
| Fact 3 | On a review, it has been decided to rationalise certain reporting requirements, and prescribe/modify reporting formats pursuant to the Foreign Exchange Management (Authorised Persons) Regulations, 2026. |
Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI instructions applied. | Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026 |
Exam Relevance
Rural: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13549 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI instructions applied. | Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026 |
Exam Relevance
Urban: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13548 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge. |
Exam Relevance
Regional: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13547 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge. |
Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI instructions applied. | Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Third Amendment Directions, 2026 |
Exam Relevance
Local: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13546 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge. |
Exam Relevance
Small: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13544 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge. |
Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI instructions applied. | Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Third Amendment Directions, 2026 |
Exam Relevance
Commercial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13543 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs.
- Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), section 3 read with section 31A and section 6 of the Factoring Regulation A
- These Amendment Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs. |
Exam Relevance
Financial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13542 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs. |
| Fact 3 | Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), section 3 read with section 31A and section 6 of the Factoring Regulation A |
Reserve Bank of India (Non-Banking Financial Companies – Governance) Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs.
- Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), sections 29A, 30A, 31 and 32 of the National Housing Bank Act, 1987 (Act 53
- These Amendment Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies - Governance) Amendment Directions, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs. |
Exam Relevance
Financial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13541 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs. |
| Fact 3 | Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), sections 29A, 30A, 31 and 32 of the National Housing Bank Act, 1987 (Act 53 |
Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs and regulations on Credit/ Investment Concentration norms applicable to Gov
- Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), section 3 read with section 31A and section 6 of the Factoring Regulation A
- These Amendment Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies - Concentration Risk Management) Third Amendment Directions, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs and regulations on Credit/ Investment Concentration norms applicable to Gov |
Exam Relevance
Financial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13540 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | There is a need to amend the Directions based on a review of regulations applicable to NBFCs in the Upper Layer under the Scale Based Regulatory Framework for NBFCs and regulations on Credit/ Investment Concentration norms applicable to Gov |
| Fact 3 | Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), section 3 read with section 31A and section 6 of the Factoring Regulation A |
Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Second Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- There is a need to amend the Directions based on a review of instructions pertaining to methodology for identification of NBFCs in the Upper layer and placement of Government owned NBFCs in various layers as envisaged under the Scale Based
- Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), section 3 read with section 31A and section 6 of the Factoring Regulation A
- These Amendment Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Second Amendment Directions, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | There is a need to amend the Directions based on a review of instructions pertaining to methodology for identification of NBFCs in the Upper layer and placement of Government owned NBFCs in various layers as envisaged under the Scale Based |
Exam Relevance
Financial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13539 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | There is a need to amend the Directions based on a review of instructions pertaining to methodology for identification of NBFCs in the Upper layer and placement of Government owned NBFCs in various layers as envisaged under the Scale Based |
| Fact 3 | Accordingly, in exercise of the powers conferred with the Reserve Bank under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934), section 3 read with section 31A and section 6 of the Factoring Regulation A |
Reserve Bank of India (Standalone Primary Dealers) Second Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge. |
Exam Relevance
Standalone: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13537 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge. |
Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- 1/2016-17 dated July 5, 2016) and paragraph 192 (Section D.4) of the Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the method
- Upon a review and to ensure greater alignment with international standards and consistent implementation across All India Financial Institutions, there is a felt need to amend these instructions.
- Accordingly, in exercise of the powers conferred by Section 45L of the Reserve Bank of India Act, 1934 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied th
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | 1/2016-17 dated July 5, 2016) and paragraph 192 (Section D.4) of the Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the method |
Exam Relevance
Financial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13538 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | 1/2016-17 dated July 5, 2016) and paragraph 192 (Section D.4) of the Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the method |
| Fact 3 | Upon a review and to ensure greater alignment with international standards and consistent implementation across All India Financial Institutions, there is a felt need to amend these instructions. |
Reserve Bank of India (Rural Co-operative Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI instructions applied. | Reserve Bank of India (Rural Co-operative Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026 |
Exam Relevance
Rural: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13536 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- 1/2016-17 dated July 5, 2016) and paragraphs 17 and 20 of the Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the methodology for computation o
- Upon a review and to ensure consistent implementation across Urban Co-operative Banks, there is a felt need to amend these instructions.
- Accordingly, in exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | 1/2016-17 dated July 5, 2016) and paragraphs 17 and 20 of the Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the methodology for computation o |
Exam Relevance
Urban: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13535 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | 1/2016-17 dated July 5, 2016) and paragraphs 17 and 20 of the Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the methodology for computation o |
| Fact 3 | Upon a review and to ensure consistent implementation across Urban Co-operative Banks, there is a felt need to amend these instructions. |
Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Banking Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- Upon a review and to ensure consistent implementation across Regional Rural Banks, there is a felt need to amend these instructions.
- Accordingly, in exercise of the powers conferred by section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that
- (i) These instructions shall be called the Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | Upon a review and to ensure consistent implementation across Regional Rural Banks, there is a felt need to amend these instructions. |
Exam Relevance
Regional: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13534 |
| Issue Date | 24.6.2026 |
| Department | Department of Banking Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | Upon a review and to ensure consistent implementation across Regional Rural Banks, there is a felt need to amend these instructions. |
| Fact 3 | Accordingly, in exercise of the powers conferred by section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that |
Reserve Bank of India (Local Area Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- Upon a review and to ensure greater alignment with international standards and consistent implementation across Local Area Banks, there is a felt need to amend these instructions.
- Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that
- (i) These instructions shall be called the Reserve Bank of India (Local Area Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | Upon a review and to ensure greater alignment with international standards and consistent implementation across Local Area Banks, there is a felt need to amend these instructions. |
Exam Relevance
Local: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13532 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | Upon a review and to ensure greater alignment with international standards and consistent implementation across Local Area Banks, there is a felt need to amend these instructions. |
| Fact 3 | Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that |
Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI instructions applied. | Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026 |
Exam Relevance
Small: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13533 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Tenth Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Regulation. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- 1/2016-17 dated July 5, 2016) and paragraph 199 (Section D.4) of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the methodology for computation of
- Upon a review and to ensure greater alignment with international standards and consistent implementation across commercial banks, there is a felt need to amend these instructions.
- Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | 1/2016-17 dated July 5, 2016) and paragraph 199 (Section D.4) of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the methodology for computation of |
Exam Relevance
Commercial: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13531 |
| Issue Date | 24.6.2026 |
| Department | Department of Regulation |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | 1/2016-17 dated July 5, 2016) and paragraph 199 (Section D.4) of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 , which specify the methodology for computation of |
| Fact 3 | Upon a review and to ensure greater alignment with international standards and consistent implementation across commercial banks, there is a felt need to amend these instructions. |
Reserve Bank of India [Disbursement of Government Pension by Agency Banks (ABs)] First Amendment Directions, 2026
Source: RBI Circular | Date: 24.6.2026 | Type: amendment
Background
RBI issued this update through the Department of Government and Bank Accounts. It should be read as part of the continuing June 2026 circular series for regulated entities.
Key Decision
-
- Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o
- The Reserve Bank, in its role as banker to the Central Government and State Governments, hereby, issues the following the Amendment Directions, to the Agency Banks, hereinafter specified.
- (i) These Directions shall be called the Reserve Bank of India [Disbursement of Government Pension by Agency Banks (ABs)] First Amendment Directions, 2026.
- (ii) These Amendment Directions shall come into effect from the date of issue.
| Aspect | Earlier | Now |
|---|---|---|
| Regulatory position | Existing RBI directions or reporting formats applied. | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Compliance focus | Regulated entities followed the previous circular text. | The Reserve Bank, in its role as banker to the Central Government and State Governments, hereby, issues the following the Amendment Directions, to the Agency Banks, hereinafter specified. |
Exam Relevance
[Disbursement: Know the issuing department, affected entities, and the exact nature of the amendment. Why it matters: questions often test whether a circular is a new framework, a modification, or a reporting/compliance update.
Summary Table
| Parameter | Value |
|---|---|
| Circular ID | 13530 |
| Issue Date | 24.6.2026 |
| Department | Department of Government and Bank Accounts |
| Significance | MEDIUM |
| Fact 1 | - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College o |
| Fact 2 | The Reserve Bank, in its role as banker to the Central Government and State Governments, hereby, issues the following the Amendment Directions, to the Agency Banks, hereinafter specified. |
| Fact 3 | (i) These Directions shall be called the Reserve Bank of India [Disbursement of Government Pension by Agency Banks (ABs)] First Amendment Directions, 2026. |
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