RBI Expands FPI Access for Overseas Individuals

The Reserve Bank of India (RBI) has liberalised the Foreign Portfolio Investment (FPI) framework, allowing all individuals residing outside India to invest in equity instruments of listed Indian companies through recognised stock exchanges.

Key points:

• Earlier available only to NRIs and OCIs, the facility is now extended to all overseas individuals.
• AD Category-I banks may open repatriable INR accounts to facilitate such investments.
• Investments will follow existing reporting and monitoring requirements applicable to NRI/OCI investments.
• Any breach of investment limits requiring conversion from FPI to FDI will follow the applicable RBI framework.
• Banks must ensure compliance with FEMA and SEBI regulations through appropriate controls and documentation.

The directions are effective immediately.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13483

RBI Enhances Customer Protection Norms for Banking Product Sales

The Reserve Bank of India (RBI) has strengthened guidelines for banks on the sale of third-party products and services, focusing on transparency and customer protection.

Key changes include:

• Banks cannot force customers to buy third-party products along with their own services. Customers must have a choice of provider where applicable.
• Banks cannot finance the purchase of any product/service through loans without customer consent.
• Banks and their agents must avoid unfair digital practices, including “dark patterns” that influence customer decisions.
• Banks must obtain customer feedback after product sales to ensure customers understand product features and risks.
• In case of proven mis-selling, banks must refund charges and compensate customers as applicable.
• Banks must comply with RBI and other regulatory guidelines for financial products and services.

The directions also prohibit practices such as misleading offers, hidden charges, forced actions, and deceptive digital interfaces.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13485

RBI Issues Guidelines to Prevent Dark Patterns in Digital Banking

The Reserve Bank of India (RBI) has amended the Small Finance Banks (SFBs) guidelines to prevent the use of dark patterns in digital banking services.

SFBs must ensure that digital platforms do not manipulate customer decisions through practices such as:

• Adding products/services without consent (Basket Sneaking)
• Creating artificial urgency or pressure (False Urgency)
• Using misleading messages to influence choices (Confirm Shaming)
• Forcing customers to share information or subscribe to additional services (Forced Action)
• Making cancellation difficult (Subscription Traps)
• Hiding important information or presenting misleading options (Interface Manipulation)
• Displaying incorrect offers or undisclosed charges (Bait & Switch / Drip Pricing)

The amendment focuses on transparent and fair digital customer interactions by SFBs.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13486

RBI Enhances Customer Protection Norms for Payments Banks

The Reserve Bank of India (RBI) has updated the Payments Banks framework to strengthen transparency, fair practices, and customer protection.

Key updates include:

• Payments Banks must ensure clear disclosure of product features, charges, and risks.
• Customer feedback must be obtained after sale of financial products/services to confirm understanding.
• Mis-selling cases require refund of customer payments and compensation as applicable.
• PBs must prevent unfair digital practices, including dark patterns such as hidden charges, misleading prompts, forced actions, and difficult cancellation processes.
• Compliance with applicable guidelines issued by RBI and other regulators is mandatory.

The amendments aim to promote responsible conduct and transparent delivery of financial services by Payments Banks.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13487

RBI Enhances Customer Protection Norms for Local Area Banks

The Reserve Bank of India (RBI) has updated the Local Area Banks (LABs) Directions, 2025 to strengthen transparency and fair practices in the sale of financial products and services.

Key updates include:

• Clear disclosure of product features, charges, risks, and terms to customers.
• Mandatory suitability assessment before offering financial products.
• Prevention of mis-selling, forced bundling, and unfair digital practices (“dark patterns”).
• Defined conduct standards for employees, DSAs, DMAs, and third-party representatives.
• Customer feedback mechanism and compensation framework for established cases of mis-selling.

LABs must also comply with applicable RBI and other regulatory guidelines.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13488

RBI Updates Customer Protection Norms for Regional Rural Banks

The Reserve Bank of India (RBI) has strengthened guidelines for Regional Rural Banks (RRBs) regarding the sale and marketing of financial products and services.

Key updates include:

• Mandatory customer consent and clear disclosure of product features, charges, risks, and terms before sale.
• Requirement for transparent advertisements and responsible conduct by RRB employees, DSAs, DMAs, and third-party representatives.
• Suitability assessment before offering financial products based on customer needs and risk profile.
• Prohibition of mis-selling, forced bundling, misleading practices, and unfair digital interface practices (“dark patterns”).
• Customer feedback mechanism and compensation provisions in cases of established mis-selling.

The amendments focus on improving transparency, fair practices, and customer protection in financial services offered by RRBs.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13489

RBI Enhances Customer Protection Norms for Urban Co-operative Banks

The Reserve Bank of India (RBI) has amended the Urban Co-operative Banks – Undertaking of Financial Services Directions, 2025 to strengthen customer protection and responsible practices in the delivery of financial services.

Key highlights:

• UCBs must ensure transparent communication while offering financial products and services, including clear disclosure of charges, risks, and terms.
• Customer consent is required before providing financial products or services.
• Banks must prevent unfair practices, misleading advertisements, and mis-selling of products.
• Digital platforms of UCBs must avoid “dark patterns” such as hidden charges, forced actions, misleading interfaces, and confusing language designed to influence customer decisions.
• UCBs must ensure appropriate systems, monitoring mechanisms, and customer grievance handling processes.

The amendments aim to promote fair, transparent, and customer-focused practices in financial service delivery by Urban Co-operative Banks.

https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13490

RBI Strengthens Guidelines on Preventing Digital Dark Patterns in Financial Services

The Reserve Bank of India (RBI) has enhanced customer protection measures by introducing guidelines to prevent unfair digital practices, known as “dark patterns”, in financial services.

Key highlights:

• Regulated entities must avoid misleading digital designs or interfaces that influence customers to take unintended actions.
• Practices such as hidden charges, difficult cancellation processes, misleading offers, disguised advertisements, repeated prompts, and confusing wording are restricted.
• Customers must receive clear and transparent information while accessing financial products and services.
• Digital platforms must ensure fair customer experience without manipulation or deceptive design practices.

The guidelines aim to promote transparency and responsible digital practices in financial service delivery.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13491

RBI Introduces Guidelines to Prevent Digital Dark Patterns in Financial Services

The Reserve Bank of India (RBI) has strengthened customer protection measures for All India Financial Institutions (AIFIs) by introducing guidelines to prevent unfair digital practices known as “dark patterns”.

Key highlights:

• AIFIs must avoid misleading digital designs that influence customers to take unintended actions.
• Practices such as false urgency, adding products/services without consent, forced actions, subscription traps, and confusing interfaces are restricted. – Banks must ensure transparent communication of charges, terms, and product information.
• Digital platforms should avoid practices like hidden pricing, disguised advertisements, repeated prompts, and misleading wording. – Customer choices must be presented fairly without manipulation or restricting access to information.

The guidelines aim to promote transparency, responsible digital practices, and fair customer experience in financial services.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13492

RBI Strengthens Customer Protection Norms for NBFCs

The Reserve Bank of India (RBI) has updated the Non-Banking Financial Companies (NBFCs) – Undertaking of Financial Services Directions to strengthen transparency, prevent mis-selling, and improve customer protection in financial services.

Key highlights:

• NBFCs must ensure clear disclosure of product features, charges, risks, and terms before offering financial products or third-party services.
• Customer consent is mandatory, and signed agreements must be provided securely after completion of sale.
• NBFCs must prevent mis-selling, avoid compulsory bundling of products, and cannot finance purchase of products/services without explicit customer consent.
• Digital platforms of NBFCs and their agents must avoid unfair practices or “dark patterns” such as false urgency, hidden charges, forced actions, subscription traps, misleading interfaces, and deceptive communication. – NBFCs must establish customer feedback mechanisms and provide refunds/compensation where mis-selling is established.

The amendments reinforce responsible selling practices, transparency, and fair customer experience in NBFC operations.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13493

RBI Aligns Housing Finance Companies with Enhanced Responsible Business Conduct Norms

The Reserve Bank of India (RBI) has amended the Housing Finance Companies (HFCs) Directions, 2025 to align advertising, marketing, and sale of financial products/services by HFCs with the broader NBFC Responsible Business Conduct framework.

Key highlights:

• Existing provisions on advertising, marketing, sales practices, and conduct requirements for Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs) under HFC Directions have been replaced.
• HFCs are now required to comply with the applicable provisions under the RBI (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025.
• The framework covers responsible customer communication, transparent product disclosures, fair selling practices, and customer protection measures.

The amendments will come into effect from January 1, 2027.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13494

RBI Revises Framework for Banks’ Third-Party Product Services

The Reserve Bank of India (RBI) has amended the Commercial Banks – Undertaking of Financial Services Directions, 2025 to update norms for banks’ agency and referral arrangements with third-party financial product providers.

Key highlights:

• Banks may facilitate only regulated financial products and services through approved third-party providers.
• Agency business will allow banks to market and facilitate sales on a fee basis without taking risk participation.
• Under referral services, banks can only introduce customers to third-party providers and cannot undertake sales or post-sale activities.
• Banks must ensure customer transparency, proper disclosures, due diligence of providers, and effective grievance redressal mechanisms.

The revised framework will be effective from January 1, 2027.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13495

RBI Updates Guidelines for Small Finance Banks’ Third-Party Services

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2026, revising the framework for agency business and referral services by Small Finance Banks (SFBs). The amendments will come into effect from January 01, 2027.

The revised framework updates definitions of Agency Business, Referral Services, Regulated Financial Products and Services, Third-party Products and Services (TPPS), and Third-party Product and Service Providers (TPPSPs).

Under the amended guidelines:

• SFBs may facilitate the sale of regulated third-party financial products through agency arrangements on a fee basis without risk participation, with clear customer disclosures.
• Under referral arrangements, banks may only refer customers to TPPSPs and cannot undertake product sales, distribution, or post-sales services.
• Banks must ensure transparency by disclosing TPPS arrangements through their digital channels.
• SFBs must conduct due diligence of TPPSPs and ensure effective customer grievance redressal mechanisms.

The amendments also align customer service and conduct requirements with the RBI (Small Finance Banks – Responsible Business Conduct) Directions, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13496

RBI Updates Guidelines for Payments Banks’ Third-Party Services

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Payments Banks – Undertaking of Financial Services) Amendment Directions, 2026, revising the framework for agency business and referral services by Payments Banks. The amendments will come into effect from January 01, 2027.

The revised guidelines define Agency Business, Referral Services, Regulated Financial Products and Services, Third-party Products and Services (TPPS), and Third-party Product and Service Providers (TPPSPs).

Key provisions include:

• Payments Banks may facilitate the sale of regulated third-party financial products under agency arrangements on a fee basis without risk participation, with appropriate customer disclosures.
• Under referral arrangements, banks may only introduce customers to TPPSPs and cannot undertake product sales or related services.
• Banks must disclose TPPS arrangements through digital channels and ensure transparency.
• Payments Banks must conduct due diligence of TPPSPs and ensure proper customer grievance redressal mechanisms.

The amendments align customer service and conduct requirements with the RBI (Payments Banks – Responsible Business Conduct) Directions, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13497

RBI Updates Guidelines for RRBs’ Third-Party Services

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026, revising the framework for agency business and referral services by Regional Rural Banks (RRBs). The amendments will come into effect from January 01, 2027.

The revised guidelines define Agency Business, Referral Services, Regulated Financial Products and Services, TPPS, and TPPSPs.

Key provisions include:

• RRBs may undertake permitted third-party product distribution, including mutual funds and insurance, on a fee basis without risk participation.
• Under referral arrangements, RRBs may only introduce customers to TPPSPs and cannot undertake sales or post-sale services.
• RRBs must comply with applicable SEBI and IRDAI regulations, ensure customer disclosures, and maintain grievance redressal mechanisms.
• Banks must conduct due diligence of TPPSPs and ensure transparency in third-party arrangements.

The amendments align customer service and conduct requirements with the RBI (Regional Rural Banks – Responsible Business Conduct) Directions, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13498

RBI Revises Framework for Urban Co-operative Banks’ Third-Party Services

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Urban Co-operative Banks – Undertaking of Financial Services) Second Amendment Directions, 2026, revising the framework for agency business and referral services by Urban Co-operative Banks (UCBs). The amendments will come into effect from January 01, 2027.

The revised guidelines update definitions of Agency Business, Referral Services, Regulated Financial Products and Services, Third-party Products and Services (TPPS), and Third-party Product and Service Providers (TPPSPs).

Key provisions include:

• UCBs may undertake permitted third-party financial services, including mutual funds, insurance, online trading facilities, and pension products, on a fee basis without risk participation.
• Under referral arrangements, UCBs may only introduce customers to TPPSPs and cannot undertake sales or post-sale services.
• UCBs must comply with applicable regulations issued by SEBI, IRDAI, PFRDA, and RBI for respective products and services.
• Banks must ensure customer disclosures, transparency through digital channels, and effective grievance redressal mechanisms.
• UCBs must meet prescribed eligibility criteria and conduct due diligence of third-party service providers.

The amendments also align customer service and conduct requirements with the RBI (Urban Co-operative Banks – Responsible Business Conduct) Directions, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13499

RBI Revises Guidelines for Rural Co-operative Banks’ Third-Party Services

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, revising the framework for agency business and referral services by Rural Co-operative Banks (RCBs). The amendments will be effective from January 01, 2027.

The revised framework defines Agency Business, Referral Services, Regulated Financial Products and Services, TPPS, and TPPSPs.

Key provisions include:

• RCBs may undertake permitted third-party financial services on a fee basis without risk participation, with customer disclosures.
• Under referral arrangements, RCBs may only introduce customers to TPPSPs and cannot undertake sales or post-sale services.
• RCBs must comply with applicable RBI and IRDAI regulations, ensure transparency, and maintain grievance redressal mechanisms.
• Third-party arrangements must align with the RBI (Rural Co-operative Banks – Responsible Business Conduct) Directions, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13500

RBI Revises Framework for NBFCs’ Third-Party Financial Services

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Second Amendment Directions, 2026, revising the framework for agency business and third-party financial services undertaken by NBFCs. The amendments will come into effect from January 01, 2027.

The revised guidelines introduce updates relating to Agency Business, Regulated Financial Products and Services, Third-party Products and Services (TPPS), and Third-party Product and Service Providers (TPPSPs).

Key provisions include:

• NBFCs may undertake distribution of regulated financial products such as insurance, mutual funds, and pension products on a fee basis without risk participation.
• Insurance distribution may be undertaken under the corporate agency or broking model, subject to IRDAI regulations.
• NBFCs distributing mutual fund products must comply with applicable SEBI guidelines.
• NBFCs providing pension-related services must comply with applicable PFRDA regulations.
• Customer disclosures, transparency through digital channels, due diligence of service providers, and grievance redressal mechanisms are mandatory.

The amendments also align customer service and conduct requirements with the RBI (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13501

RBI Revises Capital Adequacy Norms for ECLGS 5.0 Exposures

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026, revising the risk weight treatment for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The amendment introduces a new provision under the RBI (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025.

Key provision:

• Exposures guaranteed under ECLGS 5.0 will attract a 0% risk weight for 75% of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation of the guarantee.
• The remaining exposure will continue to attract risk weight as per the existing regulatory guidelines.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13503

RBI Revises Capital Adequacy Norms for AIFIs under ECLGS 5.0

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (All India Financial Institutions – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026, revising the risk weight treatment for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The amendment introduces a new provision under the RBI (All India Financial Institutions – Prudential Norms on Capital Adequacy) Directions, 2025.

Key provision:

• Exposures guaranteed under ECLGS 5.0 will carry a 0% risk weight for 75% of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation of the guarantee.
• The remaining exposure will continue to attract risk weight as per the existing regulatory guidelines.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13504

RBI Revises Capital Adequacy Norms for UCBs under ECLGS 5.0

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026, revising the risk weight treatment for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The amendment introduces a new provision under the RBI (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Directions, 2025.

Key provision:

• Exposures guaranteed under ECLGS 5.0 will attract a 0% risk weight for 75% of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation of the guarantee.
• The remaining exposure will continue to attract risk weight as per existing regulatory guidelines.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13505

RBI Revises Capital Adequacy Norms for RRBs under ECLGS 5.0

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Regional Rural Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026, revising the risk weight treatment for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The amendment introduces a new provision under the RBI (Regional Rural Banks – Prudential Norms on Capital Adequacy) Directions, 2025.

Key provision:

• Exposures guaranteed under ECLGS 5.0 will attract a 0% risk weight for 75% of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation of the guarantee.
• The remaining exposure will continue to attract risk weight as per existing regulatory guidelines.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13506

RBI Revises Capital Adequacy Norms for NBFCs under ECLGS 5.0

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026, revising the risk weight treatment for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The amendment introduces a new provision under the RBI (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025.

Key provision:

• Exposures guaranteed under ECLGS 5.0 will attract a 0% risk weight for 75% of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation of the guarantee.
• The remaining exposure will continue to attract risk weight as per existing regulatory guidelines.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13507

RBI Revises Capital Adequacy Norms for Small Finance Banks under ECLGS 5.0

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026, revising the risk weight treatment for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The amendment introduces a new provision under the RBI (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025.

Key provision:

• Exposures guaranteed under ECLGS 5.0 will attract a 0% risk weight for 75% of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation of the guarantee.
• The remaining exposure will continue to attract risk weight as per existing regulatory guidelines.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13508

RBI Relaxes Interest Rate Restrictions on Select NRI Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026, temporarily revising interest rate restrictions applicable to certain NRI deposits.

The amendment modifies the RBI (Commercial Banks – Interest Rate on Deposits) Directions, 2025 and will be effective from June 17, 2026, until September 30, 2026.

Key provisions include:

• The interest rate ceiling on fresh FCNR(B) deposits with maturities of 3 years to 5 years, including renewals upon maturity, has been temporarily withdrawn.
• The restriction on interest rates for fresh NRE deposits of 3 years and above tenors, including renewals upon maturity, has been temporarily withdrawn.
• Interest rates on NRE/NRO deposits will continue to follow existing requirements, except for the specified temporary relaxation.
• Transfers from NRO accounts to NRE accounts will not qualify for this temporary exemption.

The amendment has come into effect from the date of issue.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13509

RBI Relaxes Interest Rate Restrictions for Small Finance Banks’ NRI Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Amendment Directions, 2026, temporarily revising interest rate restrictions applicable to certain NRI deposits.

The amendment modifies the RBI (Small Finance Banks – Interest Rate on Deposits) Directions, 2025 and is effective from June 17, 2026, until September 30, 2026.

Key provisions include:

• The interest rate ceiling on fresh FCNR(B) deposits with maturities of 3 years to 5 years, including renewals upon maturity, has been temporarily withdrawn.
• The restriction on interest rates for fresh NRE deposits of 3 years and above, including renewals upon maturity, has been temporarily withdrawn.
• Interest rates on NRE/NRO deposits will continue to follow existing requirements, except for the specified temporary relaxation.
• Transfers from NRO accounts to NRE accounts will not qualify for the exemption.

The amendment has come into effect from the date of issue.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13510

RBI Relaxes Interest Rate Restrictions for Regional Rural Banks’ NRI Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026, temporarily revising interest rate restrictions applicable to certain NRI deposits.

The amendment modifies the RBI (Regional Rural Banks – Interest Rate on Deposits) Directions, 2025 and is effective from June 17, 2026, until September 30, 2026.

Key provisions include:

• The interest rate ceiling on fresh FCNR(B) deposits with maturities of 3 years to 5 years, including renewals upon maturity, has been temporarily withdrawn.
• The restriction on interest rates for fresh NRE deposits of 3 years and above, including renewals upon maturity, has been temporarily withdrawn.
• Interest rates on NRE/NRO deposits will continue to follow existing requirements, except for the specified temporary relaxation.
• Transfers from NRO accounts to NRE accounts will not qualify for this exemption.

The amendment has come into effect from the date of issue.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13511

RBI Relaxes Interest Rate Restrictions for Local Area Banks’ NRI Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026, temporarily revising interest rate restrictions applicable to certain NRI deposits.

The amendment modifies the RBI (Local Area Banks – Interest Rate on Deposits) Directions, 2025 and is effective from June 17, 2026, until September 30, 2026.

Key provisions include:

• The interest rate ceiling on fresh FCNR(B) deposits with maturities of 3 years to 5 years, including renewals upon maturity, has been temporarily withdrawn.
• The restriction on interest rates for fresh NRE deposits of 3 years and above, including renewals upon maturity, has been temporarily withdrawn.
• Interest rates on NRE/NRO deposits will continue to be governed by existing requirements, except for the specified temporary relaxation.
• Transfers from NRO accounts to NRE accounts will not qualify for this exemption.

The amendment has come into effect from the date of issue.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13512

RBI Relaxes Interest Rate Restrictions for Urban Co-operative Banks’ NRI Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026, temporarily revising interest rate restrictions applicable to certain NRI deposits.

The amendment modifies the RBI (Urban Co-operative Banks – Interest Rate on Deposits) Directions, 2025 and is effective from June 17, 2026, until September 30, 2026.

Key provisions include:

• The interest rate ceiling on fresh FCNR(B) deposits with maturities of 3 years to 5 years, including renewals upon maturity, has been temporarily withdrawn.
• The restriction on interest rates for fresh NRE deposits of 3 years and above, including renewals upon maturity, has been temporarily withdrawn.
• Interest rates on NRE/NRO deposits will continue to be governed by existing requirements, except for the specified temporary relaxation.
• Transfers from NRO accounts to NRE accounts will not qualify for this exemption.

The amendment has come into effect from the date of issue.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13513

RBI Relaxes Interest Rate Restrictions for Rural Co-operative Banks’ NRI Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026, temporarily revising interest rate restrictions applicable to certain NRI deposits.

The amendment modifies the RBI (Rural Co-operative Banks – Interest Rate on Deposits) Directions, 2025 and is effective from June 17, 2026, until September 30, 2026.

Key provisions include:

• The interest rate ceiling on fresh FCNR(B) deposits with maturities of 3 years to 5 years, including renewals upon maturity, has been temporarily withdrawn.
• The restriction on interest rates for fresh NRE deposits of 3 years and above, including renewals upon maturity, has been temporarily withdrawn.
• Interest rates on NRE/NRO deposits will continue to be governed by existing requirements, except for the specified temporary relaxation.
• Transfers from NRO accounts to NRE accounts will not qualify for this exemption.

The amendment has come into effect from the date of issue.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13514

RBI Introduces Daily Reporting Requirements for FCNR(B), ECB and OFCB Swap Facility Transactions

The Reserve Bank of India (RBI) has issued directions requiring Authorised Dealer (AD) Category-I banks to report transactions relating to FCNR(B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs) mobilised under the RBI’s swap facility.

Key provisions include:

• AD Category-I banks must submit daily transaction data on FCNR(B) deposits, ECBs, and OFCBs mobilised under the swap facility by 6:00 PM every day.
• Reports must be submitted in the prescribed formats to the respective RBI departments.
• In case there are no transactions during the day, banks must submit a NIL statement (except on Saturdays and holidays).
• Data relating to transactions from June 8, 2026, until the date of issuance of the directions must be submitted along with the first reporting due on June 22, 2026.

The directions have been issued under the provisions of the Foreign Exchange Management Act (FEMA), 1999.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13515

RBI Grants CRR and SLR Exemption for Eligible NRE Term Deposits

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026, providing temporary exemption from CRR and SLR maintenance for eligible NRE Rupee Term Deposits.

Key provisions:

• Fresh NRE term deposits of 3 years or more, including renewals upon maturity, mobilised by banks from June 19, 2026 to September 30, 2026, will be exempt from CRR and SLR maintenance.
• The exemption will apply from the reporting fortnight beginning July 16, 2026 and will continue while the eligible deposits remain with the bank.
• Transfers from NRO accounts to NRE accounts will not qualify for this exemption.

The amendment has come into force with immediate effect.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13516

RBI Grants CRR & SLR Exemption on Eligible NRE Deposits by Small Finance Banks

The Reserve Bank of India (RBI) has amended the Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio Directions, 2025, allowing exemption from CRR and SLR maintenance for eligible fresh Non-Resident (External) Rupee (NRE) term deposits.

The exemption applies to fresh NRE term deposits of three years or more tenor mobilised (including renewals upon maturity) between June 19, 2026 and September 30, 2026.

The exemption will be available from the reporting fortnight beginning July 16, 2026 and will continue as long as the original deposit amount remains with the bank. Transfers from NRO accounts to NRE accounts will not qualify for this benefit.

The amendment is effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13517

RBI Provides CRR & SLR Exemption for Eligible NRE Deposits by UCBs

The Reserve Bank of India (RBI) has amended the Urban Co-operative Banks (UCBs) – Cash Reserve Ratio and Statutory Liquidity Ratio Directions, 2025, providing exemption from CRR and SLR maintenance for eligible fresh Non-Resident (External) Rupee (NRE) term deposits.

The exemption applies to fresh NRE term deposits of three years or more tenor mobilised (including renewals upon maturity) by UCBs between June 19, 2026 and September 30, 2026.

The CRR exemption will be available from the reporting fortnight beginning July 16, 2026 and will continue for subsequent fortnights as long as the original deposit amount remains with the bank. Transfers from Non-Resident Ordinary (NRO) accounts to NRE accounts will not qualify for the exemption.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13518

RBI Grants CRR & SLR Exemption for Eligible NRE Deposits by Rural Co-operative Banks

The Reserve Bank of India (RBI) has amended the Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio Directions, 2025, providing exemption from CRR and SLR maintenance for eligible fresh Non-Resident (External) Rupee (NRE) term deposits.

The exemption applies to fresh NRE term deposits of three years or more tenor mobilised (including renewals upon maturity) by Rural Co-operative Banks between June 19, 2026 and September 30, 2026.

The CRR exemption will be available from the reporting fortnight beginning July 16, 2026 and will continue for subsequent fortnights as long as the original deposit amount remains with the bank. Transfers from Non-Resident Ordinary (NRO) accounts to NRE accounts will not qualify for the exemption.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13519

RBI Provides CRR & SLR Exemption for Eligible NRE Deposits by Regional Rural Banks

The Reserve Bank of India (RBI) has amended the Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio Directions, 2025, providing exemption from CRR and SLR maintenance for eligible fresh Non-Resident (External) Rupee (NRE) term deposits.

The exemption applies to fresh NRE term deposits of three years or more tenor mobilised (including renewals upon maturity) by Regional Rural Banks between June 19, 2026 and September 30, 2026.

The CRR exemption will be available from the reporting fortnight beginning July 16, 2026 and will continue for subsequent fortnights as long as the original deposit amount remains with the bank. Transfers from Non-Resident Ordinary (NRO) accounts to NRE accounts will not qualify for the exemption.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13520

RBI Updates Lead Bank Framework to Strengthen Financial Inclusion

The Reserve Bank of India (RBI) has revised the Lead Bank Scheme (LBS) guidelines to improve credit availability, financial inclusion, and coordination among banks and government agencies.

The revised framework focuses on monitoring district-level Credit-Deposit (CD) Ratios, strengthening credit flow in underserved areas, and implementing action plans for districts with lower credit penetration.

Banks will continue to support rural and semi-urban credit needs through the Service Area Approach, while adopting suitable due diligence measures to improve access to credit.

The guidelines also emphasize expansion of banking outlets in unbanked rural centres, promotion of digital payments, capacity building, and transparency through updated SLBC information platforms.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13521