We at Finakon track the regulatory changes. We also use AI to create a summary. We are providing a quick overview of the RBI circulars on a weekly basis on our website. The summary is neither exhaustive nor comprehensive. For accurate information, users shall refer to the original circular of the regulator. Finakon shall not be responsible for inferences drawn based on the summary provided.
RBI Allows NUCFDC to Expand Private Placement for UCB Membership
On February 26, 2026, the Reserve Bank of India issued the Reserve Bank of India (Non-Banking Financial Companies – Miscellaneous) Amendment Directions, 2026 to support the functioning of the National Urban Co-operative Finance and Development Corporation Limited, the umbrella organisation for Urban Co-operative Banks (UCBs).
NUCFDC has been established to strengthen the UCB sector by providing fund-based and non-fund-based support to its member banks. As NUCFDC plans to grant membership to more than 1,400 UCBs, the existing private placement limit of 200 persons per financial year under the Companies Act, 2013 could restrict the process.
Through this amendment, the RBI has permitted NUCFDC to offer equity shares through private placement to more than 200 persons in a financial year, subject to certain conditions. These include maintaining a board-approved resource planning policy, restricting offers only to UCBs and the National Co-operative Development Corporation (NCDC), ensuring compliance with applicable regulatory requirements, and submitting quarterly reports to the RBI detailing equity raised and subscriber information.
The directions came into immediate effect and will remain valid until March 31, 2029, unless modified, withdrawn, or extended by the RBI.
RBI Notifies UN Sanctions List Update under UAPA Compliance
On March 2, 2026, the Reserve Bank of India issued a notification informing regulated entities about an update to the UN sanctions list under Section 51A of the Unlawful Activities (Prevention) Act, 1967 and the RBI Know Your Customer Directions, 2025.
The update follows a communication from the Government of India regarding a decision by the United Nations Security Council to remove “Al-Nusrah Front for the People of the Levant” and its associated aliases, including Hay’at Tahrir al-Sham (HTS), from the ISIL (Da’esh) and Al-Qaida Sanctions List. As a result, the previously applicable asset freeze, travel ban, and arms embargo on the entity no longer apply.
RBI has advised banks, NBFCs, and other regulated institutions to update their records and ensure compliance with the procedures outlined in the KYC Directions and the UAPA Order. Any delisting requests received by regulated entities must be forwarded to the Ministry of Home Affairs for further consideration.
