What changed
RBI has updated the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (updated as on April 27, 2026), to regulate commercial banks' financial services. The updated directions come into effect immediately.
What it means for you
The updated directions aim to ensure that commercial banks maintain prudential regulations and adhere to guidelines for various financial services, including equipment leasing, factoring, and insurance business. This will help maintain financial stability and protect consumers.
What you must do
- Review and update your bank's financial services operations to comply with the updated directions.
- Ensure that your bank maintains prudential regulations for investments and adheres to guidelines for various financial services.
- Update your risk management and compliance frameworks to reflect the changes in the directions.
Who it affects
Commercial Banks, Non-Banking Financial Companies (including Housing Finance Companies) which are group entities of a bank operating in India
What are the key changes in the updated directions?
The updated directions regulate commercial banks' financial services, including equipment leasing, factoring, and insurance business, to ensure prudential regulations and consumer protection.
What is the effective date of the updated directions?
The updated directions come into effect immediately.
What are the implications of non-compliance with the updated directions?
Non-compliance may lead to regulatory action and potential penalties.