What changed
The RBI has amended the directions for rural co-operative banks' undertaking of financial services. The amendments modify the definitions of 'agency business' and 'referral services' and introduce new terms such as 'regulated financial products and services' and 'third-party product and service provider'. The changes also consolidate regulatory instructions on customer service and conduct aspects.
What it means for you
The amendments aim to clarify the regulatory framework for rural co-operative banks' engagement in financial services. The changes may impact the banks' business models and require them to review their agency business and referral services arrangements. The amendments also emphasize the importance of responsible business conduct and customer service.
What you must do
- Review agency business and referral services arrangements
- Ensure compliance with amended directions
- Update business models and policies as necessary
Who it affects
Rural co-operative banks, Third-party product and service providers, Customers of rural co-operative banks
What is the effective date of the amendments?
January 1, 2027
What are the key changes introduced by the amendments?
Modified definitions of 'agency business' and 'referral services', introduction of new terms, and consolidation of regulatory instructions on customer service and conduct aspects