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
- Update internal policy manuals to align with the consolidated direction, especially on customer service and lending conduct.
- 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.
- 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.
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
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.