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 NBFC Branch Authorisation Norms – 2026
The Reserve Bank of India has issued the NBFC – Branch Authorisation Amendment Directions, 2026, revising the 2025 framework to enable greater operational flexibility while maintaining compliance.
Key Highlights
- No Prior Approval for Branches
NBFCs can generally open branches without prior RBI approval, unless specifically restricted. - Revised Norms for Deposit-Taking NBFCs
- NOF up to ₹50 crore or rating below AA: operations restricted within the registered state.
- NOF above ₹50 crore and rating AA or above: permitted to expand across India.
- NOF above ₹50 crore but rating below AA: restricted to the registered state.
- Applicability Expanded
Covers multiple NBFC categories, including NBFC-D, NBFC-ICC, NBFC-MFI, NBFC-IFC, HFCs, and CICs, with specific provisions based on type. - Structural Changes
Certain approval-related provisions removed; terminology updated for clarity.
Effective Immediately
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13370
RBI Advisory: Update to UNSC Taliban Sanctions List (2026)
Under Section 51A of the UAPA, 1967 and RBI KYC Directions, regulated entities must ensure that no accounts are held by individuals or entities listed under UNSC sanctions.
Key Update
Amendments have been made to four entries in the UNSC 1988 (2011) Taliban Sanctions List, as notified via the April 13, 2026 UNSC communication.
Compliance Requirements
- Screening: Verify that no accounts or transactions involve listed individuals/entities.
- Action: Follow procedures under RBI KYC Directions and UAPA Order.
- Sanctions Lists: Refer to updated UNSC lists for ISIL (Da’esh), Al-Qaida, and Taliban.
- De-listing: Route requests through the Ministry of Home Affairs or the UN Focal Point.
Effective Immediately
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13371
RBI Compliance Alert: Update to UNSC Taliban Sanctions List (April 2026)
Under Section 51A of the Unlawful Activities (Prevention) Act, 1967 and RBI KYC Directions, 2025, regulated entities must ensure that no accounts are maintained for individuals or entities listed under United Nations Security Council (UNSC) sanctions.
Key Update
The Ministry of External Affairs has notified amendments to three entries (two individuals and one entity) in the UNSC 1988 (2011) Taliban Sanctions List, as per the UNSC press release dated April 15, 2026. These entries remain subject to asset freeze, travel ban, and arms embargo measures.
Compliance Requirements
- Screening: Ensure no accounts or transactions involve listed individuals/entities.
- Action: Follow procedures under Chapter IX of RBI KYC Directions and the UAPA Order.
- Sanctions Lists: Refer to updated UNSC lists for ISIL (Da’esh), Al-Qaida, and Taliban.
- De-listing: Route requests through the Ministry of Home Affairs or the UN-designated Focal Point.
Effective Immediately
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13372
RBI Revises Norms on Forex Derivatives with Related Parties
The Reserve Bank of India has updated its directions on Risk Management and Inter-Bank Dealings, withdrawing the instructions issued under A.P. (DIR Series) Circular dated April 01, 2026.
Key Update
Authorised Dealers are no longer permitted to undertake foreign exchange derivative contracts involving INR with related parties, except in the following cases:
- Cancellation and rollover of existing contracts
- Back-to-back transactions with non-related non-resident users, as per existing Master Direction guidelines
Definition of Related Parties
The term “related parties” shall have the same meaning as defined under Ind AS 24 / IAS 24 or equivalent accounting standards.
Regulatory Basis
These directions are issued under relevant provisions of the Foreign Exchange Management Act (FEMA), 1999 and apply without prejudice to other applicable laws.
Effective Immediately
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13373
