HomeCirculars › RBI/DOR/2025-26/267

RRB Responsible Business Conduct Directions 2025

Current · Source: Reserve Bank of India · RBI/DOR/2025-26/267 · issued 28 Nov 2025 · ~2 min read
Quick answerRBI consolidated all customer service and conduct rules for Regional Rural Banks into one master direction effective November 28, 2025. It covers institutional framework, customer protection, financial inclusion, lending conduct, and deposit services. RRBs must align policies immediately.
The rule, in the simplest words
How it plays out — a real example

A customer approaches a payments & clearing officer in Indore with an investment opportunity that promises unusually high returns. The officer advises the customer to be cautious, explaining that high returns often come with higher risks and that they should check the investment thoroughly before making a decision. A payments & clearing officer in Indore advises a customer to be cautious of a seemingly attractive investment scheme.

What changed

RBI issued a single comprehensive direction replacing multiple scattered circulars on customer service and fair conduct for RRBs. The direction introduces a Key Facts Statement for loans, mandates Annual Percentage Rate disclosure, and standardizes forms for deposit claims and locker inventory. It also defines bank-induced transactions and accounts with survivorship clauses.

What it means for you

RRBs now have a unified compliance framework, reducing ambiguity and ensuring consistent customer treatment across all branches. The APR requirement forces full-cost transparency, which may impact pricing strategies. Standardized claim forms will streamline settlement processes but require system updates. Banks must review internal policies to match the new definitions and disclosure norms.

What you must do

Who it affects

Regional Rural Banks (RRBs), RRB branch managers and customer service teams, RRB compliance and legal departments, RRB product and lending teams, Deposit and loan customers of RRBs

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the effective date of these directions?

The directions came into effect immediately upon issuance on November 28, 2025, unless a specific provision states otherwise.

Does this direction apply to all banks or only RRBs?

It applies exclusively to Regional Rural Banks (RRBs). Other bank categories have separate conduct directions.

What is a Key Facts Statement and why is it important?

A Key Facts Statement is a standardized disclosure document for loans that must include the Annual Percentage Rate (APR) and all charges. It helps borrowers understand the true cost of credit.

📜 Read the original circular — full text as issued by RBI
Never respond to unsolicited offers of money received through emails/phone/other media* No one really gives you money for free* Be careful while investing in seemingly attractive schemes offering high returns* Don’t invest in unregulated companies/entities* Don’t rely on hearsay - Check for yourself* High return means higher risk including potential loss of entire money – Check your risk-appetite!* Take care of your money – it is hard to earn but easy to lose* When in doubt check with a trusted financial adviser* *For any clarification, visit www.rbi.org.in or www.sebi.gov.in or www.irdai.gov.in
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/267 · issued 28 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Who does what — compliance checklist
🏦 Branch Manager
  • Train branch staff on new Key Facts Statement and APR disclosure requirements for all credit products.
  • Revise deposit account opening forms and claim settlement procedures to incorporate the standardized annexures.
💻 IT / Systems
  • Ensure systems can generate and display APR for all loan products, including all charges and fees.
  • Review and update definitions of bank-induced transactions and survivorship clauses in system logic.
📜 Compliance
  • Update internal policy manuals to align with the consolidated direction, especially on customer service and lending conduct.
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 (Regional Rural Banks (RRBs), RRB branch managers and customer service teams, RRB compliance and legal departments, RRB product and lending teams, Deposit and loan customers of RRBs), your first concrete step on “RRB Responsible Business Conduct Directions 2025” is: “Update internal policy manuals to align with the consolidated direction, especially on customer service and lending conduct.” (RBI issued this 28 Nov 2025).

  1. Circular: RBI/DOR/2025-26/267 -- RRB Responsible Business Conduct Directions 2025
  2. Issued: 28 Nov 2025
  3. Action required: Update internal policy manuals to align with the consolidated direction, especially on customer service and lending conduct.
  4. Action required: Train branch staff on new Key Facts Statement and APR disclosure requirements for all credit products.
  5. Action required: Revise deposit account opening forms and claim settlement procedures to incorporate the standardized annexures.
  6. Action required: Ensure systems can generate and display APR for all loan products, including all charges and fees.
  7. Action required: Review and update definitions of bank-induced transactions and survivorship clauses in system logic.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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.

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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=13039&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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