RBI Adds AgriSURE Fund to Small Finance Banks Undertaking
Current · Source: Reserve Bank of India · RBI/2026-27/20 · issued 27 Apr 2026 · ~1 min read
Quick answerThe RBI has amended the 2025 Small Finance Banks – Undertaking of Financial Services directions by inserting a new AgriSURE fund for start‑ups and rural enterprises. The change is effective immediately and requires banks to update their undertakings accordingly.
The rule, in the simplest words
Small Finance Banks must add a new line called AgriSURE (a fund for farm start‑ups and village businesses) to the list of services they promise in Annex I.
The change starts right away; there is no waiting period.
Banks have to rewrite their undertaking documents, update any reporting forms, and tell all relevant people about the new AgriSURE line.
They should look for rural entrepreneurs and start‑ups that could use the AgriSURE fund and keep track that the fund is used as the RBI wants.
How it plays out — a real example
Rohit, a small‑finance bank loan officer in Jaipur, opens the bank’s undertaking template each morning, adds the new "AgriSURE – Agri Fund for Start Ups & Rural Enterprises" line, emails the compliance team to confirm the update, and then calls a farmer‑run start‑up to explain how the new fund can help them grow.
What changed
The amendment adds a new line to Annex I, introducing the AgriSURE fund for start‑ups and rural enterprises. No other provisions in the 2025 directions are altered. The amendment takes effect from the date of issuance.
What it means for you
Small Finance Banks must now include the AgriSURE fund in their undertakings and ensure that any related documentation and reporting reflect this addition. The move broadens the banks’ role in supporting rural entrepreneurship and startup activity.
What you must do
Update your undertaking documents to incorporate the AgriSURE line item
Inform all relevant stakeholders about the amendment
Verify that any reporting templates capture the new fund details
Identify potential beneficiaries within the rural and startup ecosystem
Monitor compliance and fund utilisation as per RBI guidelines
Who it affects
Small Finance Banks, Rural entrepreneurs, Start‑ups, Banking regulators
❓ Common questions
What is the AgriSURE fund?
It is a fund earmarked for start‑ups and rural enterprises, added to the small finance banks’ undertaking.
When does the amendment become operative?
The amendment is effective immediately upon issuance.
Do banks need additional approvals to implement this?
No, the amendment is part of the existing undertaking and does not require separate approvals.
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/20
DOR.STR.REC.24/21-04-048/2026-27
April 27, 2026
Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) – Amendment Directions, 2026
Please refer to Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Directions, 2025 (hereinafter referred to as ‘the Directions’).
2. On a review, and in exercise of the powers conferred by section 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. The Amendment Directions modifies the Directions as under:
(1) Following shall be added to Annex I:
“2. AgriSURE - Agri Fund for Start Ups & Rural Enterprises”
4. The above amendment shall come into force with immediate effect.
(Vaibhav Chaturvedi)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/20 · issued 27 Apr 2026. The plain-English explanation above is BankPulse’s own independent summary.
Identify potential beneficiaries within the rural and startup ecosystem
📜 Compliance
Update your undertaking documents to incorporate the AgriSURE line item
Inform all relevant stakeholders about the amendment
Verify that any reporting templates capture the new fund details
Monitor compliance and fund utilisation as per RBI guidelines
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Small Finance Banks, Rural entrepreneurs, Start‑ups, Banking regulators), your first concrete step on “RBI Adds AgriSURE Fund to Small Finance Banks Undertaking” is: “Update your undertaking documents to incorporate the AgriSURE line item” (RBI issued this 27 Apr 2026).
Circular: RBI/2026-27/20 -- RBI Adds AgriSURE Fund to Small Finance Banks Undertaking
Issued: 27 Apr 2026
Action required: Update your undertaking documents to incorporate the AgriSURE line item
Action required: Inform all relevant stakeholders about the amendment
Action required: Verify that any reporting templates capture the new fund details
Action required: Identify potential beneficiaries within the rural and startup ecosystem
Action required: Monitor compliance and fund utilisation as per RBI guidelines
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13389&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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