RBI Circulars Sept 24 to Oct 8, 2026

Regulatory Update to Sept 24 to Oct 8, 2026

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 UNSC ISIL (Da’esh) & Al-Qaida Sanctions List

The RBI has advised regulated entities to take note of the UNSC amendment dated September 28, 2026 to its ISIL (Da’esh) and Al-Qaida Sanctions List under Section 51A of the UAPA, 1967.

The amendment updates the entry of Khatiba Jama’at al-Tawhid wal-Jihad (KTJ), listed as an entity subject to asset freeze, travel ban and arms embargo.

Regulated entities are required to follow the prescribed procedures under the UAPA Order dated February 2, 2021, as amended on April 22, 2024, and ensure compliance with the updated sanctions list.

The RBI has also advised regulated entities to take note of future updates to the UNSC sanctions lists and take necessary action.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13715

RBI Consolidates Guidelines on Credit Facilities to SCs & STs

The Reserve Bank of India (RBI) has consolidated its guidelines on credit facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs) through a Master Circular.

Key provisions include:

Banks should give appropriate focus to SC/ST beneficiaries in credit planning and facilitate timely and adequate credit.
Bank staff should assist borrowers with loan applications and create awareness about available credit schemes.
Banks should not insist on deposits for eligible government-sponsored poverty alleviation and self-employment schemes for SC/ST borrowers.
Rejection of SC/ST loan applications under government programmes should be reviewed at the next higher level, with reasons recorded.
Banks should monitor and periodically review credit flow to SC/ST beneficiaries and submit prescribed reports.

The Master Circular consolidates RBI instructions on the subject issued up to the date of the circular.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13716

RBI Allows Executive Committee to Monitor ATM Cassette Swaps

The Reserve Bank of India (RBI) has partially modified its earlier instructions on cassette swaps in ATMs.

Banks may now delegate the responsibility of monitoring the progress of ATM cassette swap implementation from the Board to a Committee of Executives of the bank.

The amendment modifies the earlier instructions issued on March 31, 2022.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13717

RBI Withdraws 260 Currency Management Circulars and Guidelines

The Reserve Bank of India (RBI) has reviewed its instructions relating to currency management as part of its initiative to rationalise the regulatory framework.

Following the review, RBI has withdrawn 260 circulars and guidelines that have either been consolidated into existing Master Directions or have become obsolete or redundant.

The withdrawal covers instructions relating to areas such as currency chests, banknotes and coins, counterfeit notes, note exchange facilities, currency distribution and cash management.

The circular is effective from October 1, 2026.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13718

RBI Introduces One-Time Approval for Subsequent Bank Share Acquisitions

The Reserve Bank of India (RBI) has amended the Commercial Banks – Acquisition and Holding of Shares or Voting Rights Directions, 2025 to introduce a one-time approval mechanism for certain subsequent acquisitions of major shareholding.

Key provisions include:

Mutual funds, insurance companies and pension funds meeting specified conditions may seek one-time approval for subsequent acquisitions.
The approval can cover acquisitions of up to 10% of the paid-up share capital or voting rights, calculated on an aggregate basis.
Applications must be submitted through PRAVAAH and are subject to RBI-prescribed conditions and fit-and-proper requirements.
Changes in aggregate shareholding crossing the 5% threshold must be reported to RBI and the concerned bank within three working days.
The amendment also clarifies conditions under which a client’s acquisition is not treated as an indirect acquisition by its portfolio manager.

The amendment is effective immediately.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13719

RBI Introduces One-Time Approval for Subsequent Share Acquisitions in Small Finance Banks

The Reserve Bank of India (RBI) has amended the Small Finance Banks – Acquisition and Holding of Shares or Voting Rights Directions, 2025, introducing a one-time approval mechanism for certain subsequent acquisitions of major shareholding.

Key provisions include:

Mutual funds, insurance companies and pension funds meeting the specified conditions may seek one-time approval for subsequent acquisitions.
The approval may cover subsequent acquisitions of up to 10% of the paid-up share capital or voting rights, calculated on an aggregate basis.
Applications must be submitted through PRAVAAH and are subject to RBI-prescribed conditions and fit-and-proper requirements.
Any increase or decrease in aggregate holding above or below 5% must be reported to RBI and the concerned Small Finance Bank within three working days.
The amendment also clarifies conditions under which a client’s acquisition is not treated as an indirect acquisition by its portfolio manager.

The amendment is effective immediately.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13720

RBI Introduces One-Time Approval for Subsequent Share Acquisitions in Payments Banks

The Reserve Bank of India (RBI) has amended the Payments Banks – Acquisition and Holding of Shares or Voting Rights Directions, 2025, introducing a one-time approval mechanism for certain subsequent acquisitions of major shareholding.

Key provisions include:

Mutual funds, insurance companies and pension funds meeting specified conditions may seek one-time approval for subsequent acquisitions.
The approval may cover subsequent acquisitions of up to 10% of the paid-up share capital or voting rights, calculated on an aggregate basis.
Applications must be submitted through PRAVAAH and are subject to RBI-prescribed conditions and fit-and-proper requirements.
Any increase or decrease in aggregate holding above or below 5% must be reported to RBI and the concerned Payments Bank within three working days.
The amendment also clarifies conditions under which a client’s acquisition is not treated as an indirect acquisition by its portfolio manager.

The amendment is effective immediately.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13721

RBI Introduces One-Time Approval for Subsequent Share Acquisitions in Local Area Banks

The Reserve Bank of India (RBI) has amended the Local Area Banks – Acquisition and Holding of Shares or Voting Rights Directions, 2025, introducing a one-time approval mechanism for certain subsequent acquisitions of major shareholding.

Key provisions include:

Mutual funds, insurance companies and pension funds meeting specified conditions may seek one-time approval for subsequent acquisitions.
The approval may cover subsequent acquisitions of up to 10% of the paid-up share capital or voting rights, calculated on an aggregate basis.
Applications must be submitted through PRAVAAH and are subject to RBI-prescribed conditions and fit-and-proper requirements.
Any increase or decrease in aggregate holding above or below 5% must be reported to RBI and the concerned Local Area Bank within three working days.
The amendment also clarifies conditions under which a client’s acquisition is not treated as an indirect acquisition by its portfolio manager.

The amendment is effective immediately.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13722

RBI Revises Approval Framework for Online Form A2 Remittances

The Reserve Bank of India (RBI) has revised the internal approval requirements for outward foreign exchange remittances based on online or physical submission of Form A2.

Under the revised instructions:

Authorised Dealers (ADs) are required to frame appropriate internal guidelines for facilitating outward remittances based on Form A2 and related documents.
These guidelines must be approved by the Board, a Board Committee, or a Management Committee to which the Board has delegated the authority.
All other instructions issued under the earlier circular dated July 3, 2024 remain unchanged.
ADs are required to bring the revised instructions to the notice of their constituents.

The directions are issued under Sections 10(4) and 11(1) of FEMA, 1999.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13724

RBI Shifts NRD-CSR Reporting to CIMS Sankalan Portal

The Reserve Bank of India (RBI) has updated the reporting framework for Non-Resident Deposits – Comprehensive Single Return (NRD-CSR), with the return now submitted through the CIMS Sankalan portal under return code R012.

Key provisions include:

NRD-CSR reporting has moved from the earlier XBRL platform to the CIMS Sankalan portal.
Banks can submit the return through system-to-system integration, file upload, or a screen-based web form.
RBI has rationalised the NRD-CSR format, including maturity codes, record types and validation checks.
Banks may use the prescribed Excel template for screen-based submission or XML format for file upload/system-to-system reporting.
The NRD-CSR return must be submitted on or before the 10th of the following month.
The circular supersedes the earlier instructions issued on August 7, 2013.

The directions are issued under Sections 10(4) and 11(2) of FEMA, 1999.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13725

RBI Revises Standing Liquidity Facility Rate for Primary Dealers

The Reserve Bank of India (RBI) has increased the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, from 5.25% to 5.50%, with immediate effect, as announced in the Monetary Policy Statement 2026-27.

Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs) as collateralised liquidity support from the Reserve Bank will now be available at the revised repo rate of 5.50%, effective immediately.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13726

RBI Revises Liquidity Adjustment Facility Rates

Consequently, the following LAF rates have been revised:

Standing Deposit Facility (SDF): 5.25%
Policy Repo Rate: 5.50%
Marginal Standing Facility (MSF): 5.75%

All other terms and conditions of the existing LAF Scheme remain unchanged.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13727

RBI Revises Penal Interest Rates on CRR and SLR Shortfalls

The Reserve Bank of India (RBI) has revised the Bank Rate upward by 25 basis points, from 5.50% to 5.75%, with immediate effect, as announced in the Monetary Policy Statement 2026-27 dated October 7, 2026.

Accordingly, the penal interest rates on shortfalls in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements that are linked to the Bank Rate have been revised:

Bank Rate + 3 percentage points: 8.50% → 8.75%
Bank Rate + 5 percentage points: 10.50% → 10.75%

The revised rates are effective immediately.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13728

RBI Updates Counterparty Credit Risk Framework

The Reserve Bank of India (RBI) has amended the Commercial Banks – Forthcoming Instructions Directions, 2025 to revise the methodology for calculating Counterparty Credit Risk (CCR) and align it with international standards.

The revised framework:

Introduces SA-CCR for specified derivative exposures.
Updates the methodology for calculating counterparty credit exposures and risk-weighted assets.
Provides revised treatment for Central Counterparties (CCPs) and clearing members.
Applies from April 1, 2027 to specified commercial banks, while other banks may choose between CEM and SA-CCR.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13730

RBI Removes Provision on Deferment of Option Premium

The Reserve Bank of India (RBI) has amended the Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025 following the issuance of the Commercial Banks – Forthcoming Instructions Amendment Directions, 2026.

Under the amendment, Sub-section D of Chapter IV, Paragraph 38, relating to deferment of option premium, has been deleted.

The amendment will come into effect from April 1, 2027 and has been issued under Section 35A of the Banking Regulation Act, 1949.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13731

RBI Revises Capital Adequacy Norms for Clearing Member Banks

The Reserve Bank of India (RBI) has amended the Commercial Banks – Prudential Norms on Capital Adequacy Directions, 2025 to align provisions relating to clearing member banks and incurred CVA losses with international standards.

Key amendments include:

A 2% risk weight for a bank’s trade exposure to a Qualified Central Counterparty (QCCP) for specified derivatives and Securities Financing Transactions (SFTs), including certain client clearing exposures.
Revised treatment of incurred Credit Valuation Adjustment (CVA) losses for determining Exposure at Default (EAD), based on the amount recognised as an incurred write-down in the bank’s financial statements.
Deletion of specified provisions under paragraph 213 relating to CVA losses.

The amendment directions are effective from the date of issue.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13732

RBI Revises Capital Adequacy Norms for Small Finance Banks

The Reserve Bank of India (RBI) has amended the Small Finance Banks – Prudential Norms on Capital Adequacy Directions, 2025 to align provisions relating to clearing member banks with international standards.

Under the amendment, a 2% risk weight will apply to a bank’s trade exposure to a Qualified Central Counterparty (QCCP) for OTC derivatives, exchange-traded derivatives and Securities Financing Transactions (SFTs).

The 2% risk weight will also apply to certain client clearing exposures where the bank is required to reimburse the client for losses arising from a QCCP default.

The amendment is effective from the date of issue.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13733

RBI Revises Capital Adequacy Norms for Payments Banks

The Reserve Bank of India (RBI) has amended the Payments Banks – Prudential Norms on Capital Adequacy Directions, 2025 to align provisions relating to clearing member banks with international standards.

The 2% risk weight will also apply to certain client clearing exposures where the clearing member bank is required to reimburse clients for losses arising from a QCCP default.

The amendment is effective from the date of issue.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13734

RBI Revises Capital Adequacy Norms for AIFIs

The Reserve Bank of India (RBI) has amended the All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy Directions, 2025 to align provisions relating to clearing member AIFIs with international standards.

Under the amendment, a 2% risk weight will apply to an AIFI’s trade exposure to a Qualified Central Counterparty (QCCP) for OTC derivatives, exchange-traded derivatives and Securities Financing Transactions (SFTs).

The 2% risk weight will also apply to certain client clearing exposures where the AIFI is required to reimburse the client for losses arising from a QCCP default.

The amendment is effective from the date of issue.

https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=13735