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 Updates CRR and SLR Rules for Scheduled Local Area Banks

The Reserve Bank of India (RBI) has amended the CRR and SLR Directions for Local Area Banks (LABs) following the inclusion of a Local Area Bank in the Second Schedule to the RBI Act, 1934.

The amendment introduces provisions applicable to scheduled LABs, including:

• Requirements for incremental CRR and maintenance of prescribed CRR on a daily and fortnightly average basis.
• Minimum daily CRR maintenance of 90% of the required CRR during the reporting fortnight.
• Specified exemptions from CRR and SLR, including certain banking-system liabilities, ACU balances and market repo funds against Government securities.
• Provisions for penal interest in case of CRR shortfalls, including higher penal rates where the shortfall continues.
• Additional provisions and consequences for continued CRR default by scheduled LABs.

The amended Directions are effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13697

RBI Shortens PSL Exemption Window for FCNR(B) and NRE-Linked Advances

The Reserve Bank of India (RBI) has amended the Priority Sector Lending (PSL) Directions, 2025, reducing the period for specified advances to be excluded from Adjusted Net Bank Credit (ANBC) for calculating priority sector targets.

The exemption period for advances against:

• Fresh FCNR(B) deposits with a tenor of 3 to 5 years; and
• NRE term deposits with a tenor of 3 years or more,

has been revised from September 30, 2026 to August 31, 2026.

The amount excluded from ANBC will be limited to the outstanding FCNR(B)/NRE deposits that qualify for exemption from CRR and SLR requirements.

The amendment is effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13698

RBI Expands KYC Document Certification Facility to FPIs

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) Directions, 2025 to extend the existing alternative document-certification facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs).

Under the revised provisions, banks may accept original certified copies of KYC documents for FPIs, certified by authorised officials of eligible overseas bank branches, overseas banks having relationships with Indian banks, Notary Publics, Courts/Magistrates, Judges, or the Indian Embassy/Consulate General in the country where the non-resident customer resides.

The amendment is effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13699

RBI Extends KYC Certification Facility to FPIs

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) Directions, 2025 applicable to Small Finance Banks (SFBs) to extend the existing alternative document-certification facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs).

SFBs may accept original certified copies of KYC documents for FPIs, certified by authorised officials of eligible overseas bank branches, overseas banks having relationships with Indian banks, Notary Publics, Courts/Magistrates, Judges, or the Indian Embassy/Consulate General in the country where the non-resident customer resides.

The amendment is effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13700

RBI Extends KYC Certification Facility to FPIs

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) Directions, 2025 applicable to Local Area Banks (LABs) to extend the existing alternative document-certification facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs).

LABs may accept original certified copies of KYC documents for FPIs, certified by authorised officials of eligible overseas bank branches, overseas banks having relationships with Indian banks, Notary Publics, Courts/Magistrates, Judges, or the Indian Embassy/Consulate General in the country where the non-resident customer resides.

The amendment is effective immediately.

http://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13701

RBI Extends KYC Certification Facility to FPIs for RRBs

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) Directions, 2025 applicable to Regional Rural Banks (RRBs), extending the existing alternative document-certification facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs).

RRBs may accept original certified copies of KYC documents for FPIs, certified by any of the following authorised persons or authorities:

• Authorised officials of overseas branches of Scheduled Commercial Banks registered in India
• Branches of overseas banks having relationships with Indian banks
• Notary Public abroad
• Court Magistrate
• Judge
• Indian Embassy or Consulate General in the country where the non-resident customer resides

The amendment is effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13702

RBI Extends KYC Certification Facility to FPIs for UCBs

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) Directions, 2025 applicable to Urban Co-operative Banks (UCBs), extending the existing alternative document-certification facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs).

UCBs may accept original certified copies of KYC documents for FPIs, certified by any of the following authorised persons or authorities:

• Authorised officials of overseas branches of Scheduled Commercial Banks registered in India
• Branches of overseas banks having relationships with Indian banks
• Notary Public abroad
• Court Magistrate
• Judge
• Indian Embassy or Consulate General in the country where the non-resident customer resides

The amendment is effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13703

RBI Extends KYC Certification Facility to FPIs for Rural Co-operative Banks

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) Directions, 2025 applicable to Rural Co-operative Banks, extending the existing alternative document-certification facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs).

Rural Co-operative Banks may accept original certified copies of KYC documents for FPIs, certified by authorised officials of eligible overseas bank branches, overseas banks having relationships with Indian banks, Notary Publics, Courts/Magistrates, Judges, or the Indian Embassy/Consulate General in the country where the non-resident customer resides.

The amendment is effective immediately.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13704

RBI Finalises Framework for Novation of OTC Derivative Contracts

The Reserve Bank of India (RBI) has finalised instructions governing the novation of Over-the-Counter (OTC) derivative contracts, following feedback received on the draft directions issued in July 2025.

To consolidate the regulatory framework, the instructions have been incorporated into the respective directions covering:

• OTC Foreign Exchange derivatives
• Rupee Interest Rate derivatives
• Government Securities derivatives
• Credit derivatives

The instructions apply to any novation undertaken on or after the date of issue of the circular.

The directions have been issued under Sections 45W and 45U of the Reserve Bank of India Act, 1934.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13706

RBI Updates InvIT & REIT Valuation Norms

The RBI has amended the Investment Portfolio Directions, 2025 to prescribe valuation norms for InvIT and REIT investments by commercial banks.

• Quoted units/securities: Valued as per existing norms for quoted securities.
• Unquoted units: Valued at the NAV disclosed by the InvIT/REIT.
• If the required NAV is not disclosed, or the units are classified as infrequently traded, they will be valued at ₹1.
• Other unquoted instruments will follow the existing prescribed valuation methodology.

The amendment is effective from the date of issue.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13707

RBI Clarifies InvIT & REIT Valuation Norms for Local Area Banks

The RBI has amended the Investment Portfolio Directions, 2025 to establish specific valuation norms for Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) investments held by Local Area Banks.

• Quoted InvIT/REIT units and securities: Valued as per the existing rules for quoted securities.
• Unquoted units: Valued at the NAV disclosed by the InvIT/REIT.
• If the required NAV is not disclosed, or the units are classified as infrequently traded, the units will be valued at ₹1 for the purpose of these Directions.
• Other unquoted instruments issued by InvITs/REITs will follow the applicable prescribed valuation methodology.

The amendment is effective from the date of issue.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13708

RBI Clarifies InvIT & REIT Valuation Norms for Small Finance Banks

The RBI has amended the Investment Portfolio Directions, 2025 to specify valuation norms for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) held by Small Finance Banks.

• Quoted units/securities: Valued as per the existing norms for quoted securities.
• Unquoted units: Valued at the NAV disclosed by the InvIT/REIT.
• If the required NAV is not disclosed, or the units are classified as infrequently traded, they will be valued at ₹1 for the purpose of these Directions.
• Other unquoted instruments issued by InvITs/REITs will be valued using the applicable prescribed methodology.

The amendment is effective from the date of issue.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13709

RBI Clarifies InvIT & REIT Valuation Norms for Payments Banks

The RBI has amended the Investment Portfolio Directions, 2025 to specify valuation norms for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) held by Payments Banks.

• Quoted units/securities: Valued as per the existing norms for quoted securities.
• Unquoted units: Valued at the NAV disclosed by the InvIT/REIT.
• If the required NAV is not disclosed, or the units are classified as infrequently traded, they will be valued at ₹1 for the purpose of these Directions.
• Other unquoted instruments issued by InvITs/REITs will be valued using the applicable prescribed methodology.

The amendment is effective from the date of issue.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13710

RBI Clarifies InvIT & REIT Valuation Norms for All India Financial Institutions

The RBI has amended the Investment Portfolio Directions, 2025 to specify valuation norms for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) held by All India Financial Institutions (AIFIs).

• Quoted units/securities: Valued as per the existing norms for quoted securities.
• Unquoted units: Valued at the NAV disclosed by the InvIT/REIT.
• If the required NAV is not disclosed, or the units are classified as infrequently traded, they will be valued at ₹1 for the purpose of these Directions.
• Other unquoted instruments issued by InvITs/REITs will be valued using the applicable prescribed methodology.

The amendment is effective from the date of issue.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13711

₹4,850 Crore India-Supported Line of Credit for Maldives

The Export-Import Bank of India (Exim Bank) has entered into an agreement with the Government of Maldives for a Government of India-supported Line of Credit (LoC) of ₹4,850 crore to finance developmental projects in Maldives.

Under the LoC:

• At least 75% of the contract value must be supplied from India, while up to 25% may be procured from outside India.
• Individual Credit Agreements will be executed for approved projects, with a minimum value of ₹500 crore.
• The agreement is effective from August 27, 2026.
• Shipments under the LoC must comply with applicable export declaration requirements.
• No agency commission is payable under the LoC, subject to applicable FEMA provisions for any commission paid from eligible sources.

https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13712