The Reserve Bank of India has issued a final suite of amendment directions modifying the regulatory framework for Primary (Urban) Co-operative Banks (UCBs). These directives specifically overhaul the definitions and limits surrounding unsecured advances, housing loan tenors, and financial statement disclosures. To ensure seamless compliance by the October 1, 2026 deadline, detailed changes and required […]

Executive Summary Following the draft guidelines issued in February 2026, the RBI has finalized its regulatory review to ease the compliance burden on low-risk NBFCs. The core modification introduces the “Unregistered Type I NBFC” category, granting exemptions from mandatory registration (Section 45-IA of the RBI Act) for entities with an asset size of less than

1. Executive Summary The Reserve Bank of India (RBI) has issued the final Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026. The primary objective is to facilitate the “ease of doing business” by providing operational flexibility for branch expansion while ensuring systemic compliance. Consequential updates have also been made to

Executive Summary On March 10, 2026, the Reserve Bank of India (RBI) issued seven Amendment Directions modifying the capital computation and concentration norms across various regulated entities. The primary objective is to clarify the components of Owned Fund / Tier 1 Capital—specifically allowing the inclusion of quarterly profits under strict audit conditions—and to mandate the

Objective: To impart clarity on the Counterparty Credit Risk (CCR) framework and align the add-on factors for the computation of Potential Future Exposure (PFE) under the Current Exposure Method (CEM) with the Basel Committee on Banking Supervision (BCBS) international guidelines. 1. Commercial Banks Applicable Entity: All Commercial Banks (excluding Local Area Banks and Regional Rural

1. Commercial Banks – Amendment Directions Applicable Entities: All Scheduled Commercial Banks (excluding RRBs). Specific Changes Required: Acquisition Finance: New framework allowing banks to fund Indian non-financial companies for strategic equity acquisitions (up to 75% of value). Bridge Finance: Permitted for an interim period (max 1 year) with a firm repayment plan via equity or

Source: RBI Press Release 2025-2026/2074 Date Issued: February 09, 2026 Effective Date: April 01, 2026 1. Applicable Entities These directions modify the Master Direction – Lending to Micro, Small & Medium Enterprises (MSME) Sector (Updated as on July 23, 2025). Consequently, the amendments are applicable to: All Scheduled Commercial Banks (SCBs) Small Finance Banks (SFBs)

Reserve Bank of India (Priority Sector Lending – Targets and Classification) (Amendment) Directions, 2026 Date of Issue: January 19, 2026 Reference: PR 2025-2026/1947 Executive Summary The Reserve Bank of India has issued amendments to the Master Directions on Priority Sector Lending (PSL) to align with recent regulatory notifications and expand the scope of eligible entities

Date of Issue: January 05, 2026 Subject: Harmonized Framework for Lending to Related Parties & Financial Statement Disclosures. Overview: The Reserve Bank of India has issued 16 distinct Amendment Directions to rationalize and harmonize the norms for “Lending to Related Parties” across all Regulated Entities (REs). These amendments introduce a principle-based framework, stricter governance on