{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md12942","title":"Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 (Updated as on July 1, 2026)","document_kind":"Directions","page":"https://bankpulse.ai/rule/md12942","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Finance companies","class_code":"NBFC","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md12942","mode":"four_dates_v1","published":{"label":"Published","value":"Nov 28, 2025","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md12942.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12942","document_date":"Nov 28, 2025","read_by_bankpulse":"2026-08-21 16:21:07 UTC","text_sha256":"1ab94da93d9d73fc5a6f26dc22cfa1f13bc303507593a78989bc7f287af5f58f","word_count":9801,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":79,"points_naming_an_rbi_paragraph":79,"points_stored":79,"actions":0,"amendments":3},"points":[{"n":1,"claim":"md12942-53d69120","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Conduct rules for finance firms","plain_english":"This document sets the lending conduct rules for non-banking financial companies.","rbi_paragraph":"Para 1","rbi_char_offset":3967,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p1","layer":"bankpulse"},{"n":2,"claim":"md12942-a58b2273","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"Start date","plain_english":"These Directions took effect on the day RBI issued them.","rbi_paragraph":"Para 2","rbi_char_offset":4112,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p2","layer":"bankpulse"},{"n":3,"claim":"md12942-17ac0ace","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These Directions apply to every layer of non-banking financial company listed in them.","rbi_paragraph":"Para 3","rbi_char_offset":4226,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p3","layer":"bankpulse"},{"n":1,"claim":"md12942-e931e312","page_group":"Chapter II. Institutional Framework","stored_section":"WHO SHOULD ACT","heading":"Board approves conduct policies","plain_english":"The Board must approve the policies and reviews that keep conduct responsible.","rbi_paragraph":"Para 7","rbi_char_offset":9453,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p4","layer":"bankpulse"},{"n":2,"claim":"md12942-abf094c8","page_group":"Chapter II. Institutional Framework","stored_section":"WHO SHOULD ACT","heading":"Board approves fair practices","plain_english":"The Fair Practices Code must be in the borrower's own language where possible.","rbi_paragraph":"Para 7(1)","rbi_char_offset":9718,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p5","layer":"bankpulse"},{"n":3,"claim":"md12942-fa784b2c","page_group":"Chapter II. Institutional Framework","stored_section":"WHO SHOULD ACT","heading":"Reviews go to the Board","plain_english":"A combined report of these reviews must go to the Board at regular intervals.","rbi_paragraph":"Para 8","rbi_char_offset":10870,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p6","layer":"bankpulse"},{"n":1,"claim":"md12942-74d4a508","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Language the borrower knows","plain_english":"Every message to the borrower must be in a language the borrower understands.","rbi_paragraph":"Para 10","rbi_char_offset":11169,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p7","layer":"bankpulse"},{"n":2,"claim":"md12942-b02224db","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Form lists the papers","plain_english":"The loan application form must state which papers have to be sent with it.","rbi_paragraph":"Para 11","rbi_char_offset":11545,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p8","layer":"bankpulse"},{"n":3,"claim":"md12942-c6eaeea3","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Receipt for every application","plain_english":"The lender must give an acknowledgement for every loan application received.","rbi_paragraph":"Para 12","rbi_char_offset":11664,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p9","layer":"bankpulse"},{"n":4,"claim":"md12942-ddd0438e","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Time frame on the receipt","plain_english":"That acknowledgement should also state by when the application will be decided.","rbi_paragraph":"Para 12","rbi_char_offset":11762,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p10","layer":"bankpulse"},{"n":5,"claim":"md12942-32dfa13a","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Late payment penalty in bold","plain_english":"The penalty for late repayment must be printed in bold in the loan agreement.","rbi_paragraph":"Para 13","rbi_char_offset":12399,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p11","layer":"bankpulse"},{"n":6,"claim":"md12942-02438f31","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Rate changes look forward","plain_english":"A change in interest rate or charges can only apply from that date onwards.","rbi_paragraph":"Para 15","rbi_char_offset":13534,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p12","layer":"bankpulse"},{"n":7,"claim":"md12942-e8eaccf4","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Rates published openly","plain_english":"Interest rates and the way risk is graded must be on the website or in newspapers.","rbi_paragraph":"Para 23","rbi_char_offset":16096,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p13","layer":"bankpulse"},{"n":8,"claim":"md12942-7829d674","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Website kept current","plain_english":"The published information must be updated whenever a rate changes.","rbi_paragraph":"Para 23","rbi_char_offset":16324,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p14","layer":"bankpulse"},{"n":9,"claim":"md12942-3df12eb1","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No disability discrimination","plain_english":"A loan cannot be refused to a person on the ground of a physical or visual disability.","rbi_paragraph":"Para 28","rbi_char_offset":18058,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p15","layer":"bankpulse"},{"n":10,"claim":"md12942-41fec324","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Branches must assist","plain_english":"Every branch must give all possible help to such customers.","rbi_paragraph":"Para 28","rbi_char_offset":18242,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p16","layer":"bankpulse"},{"n":11,"claim":"md12942-1974133d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Complaints route stays open","plain_english":"Complaints from persons with disabilities go through the existing complaints system.","rbi_paragraph":"Para 28","rbi_char_offset":18591,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p17","layer":"bankpulse"},{"n":12,"claim":"md12942-8fd2074e","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Key Facts for term loans","plain_english":"A Key Facts Statement is required for every retail and small business term loan.","rbi_paragraph":"Para 29","rbi_char_offset":18796,"weight":"DO IT","role":"All staff","team":null,"products_covered":["msme-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p18","layer":"bankpulse"},{"n":13,"claim":"md12942-fc3ccdda","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Key Facts in plain language","plain_english":"That statement must be written in a language the borrower understands.","rbi_paragraph":"Para 29(1)","rbi_char_offset":19146,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p19","layer":"bankpulse"},{"n":14,"claim":"md12942-34dea327","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Explained and acknowledged","plain_english":"The statement must be explained to the borrower, who signs to say it was understood.","rbi_paragraph":"Para 29(1)","rbi_char_offset":19215,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p20","layer":"bankpulse"},{"n":15,"claim":"md12942-b4c158c2","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Bound by the stated terms","plain_english":"The lender is bound by the terms in that statement if the borrower agrees in time.","rbi_paragraph":"Para 29(2)","rbi_char_offset":19765,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p21","layer":"bankpulse"},{"n":16,"claim":"md12942-f626c212","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Full cost and schedule","plain_english":"The statement must carry the annual percentage rate and the repayment schedule.","rbi_paragraph":"Para 29(3)","rbi_char_offset":19888,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p22","layer":"bankpulse"},{"n":17,"claim":"md12942-efcdefd2","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Receipts for charges","plain_english":"Where the lender collects such charges, a receipt must reach the borrower in good time.","rbi_paragraph":"Para 29(4)","rbi_char_offset":23337,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p23","layer":"bankpulse"},{"n":18,"claim":"md12942-8ab67819","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Summary box in the agreement","plain_english":"The statement must also appear as a summary box inside the loan agreement.","rbi_paragraph":"Para 29(6)","rbi_char_offset":23657,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p24","layer":"bankpulse"},{"n":19,"claim":"md12942-753da7ca","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No interest on penalties","plain_english":"Penal charges cannot be capitalised. No further interest may run on them.","rbi_paragraph":"Para 30(1)","rbi_char_offset":24457,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p25","layer":"bankpulse"},{"n":20,"claim":"md12942-45d94999","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Penalty only on the default","plain_english":"Penal charges must be reasonable and charged only on the amount in default.","rbi_paragraph":"Para 30(1)","rbi_char_offset":25357,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p26","layer":"bankpulse"},{"n":21,"claim":"md12942-351bb15d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No extra interest component","plain_english":"No new component may be added to the rate of interest to work around these rules.","rbi_paragraph":"Para 30(2)","rbi_char_offset":25961,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p27","layer":"bankpulse"},{"n":22,"claim":"md12942-55d1819d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHO SHOULD ACT","heading":"Board policy on penal charges","plain_english":"The Board must approve a policy on penal charges by whatever name they are called.","rbi_paragraph":"Para 30(3)","rbi_char_offset":26112,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p28","layer":"bankpulse"},{"n":23,"claim":"md12942-f1a6a78f","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Same penalty for all","plain_english":"Within a loan product, penal charges must be the same whoever the borrower is.","rbi_paragraph":"Para 30(4)","rbi_char_offset":26663,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p29","layer":"bankpulse"},{"n":24,"claim":"md12942-7d42b3db","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Website link is not enough","plain_english":"Pointing to a schedule on the website does not meet the disclosure duty.","rbi_paragraph":"Para 30(6)","rbi_char_offset":27712,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p30","layer":"bankpulse"},{"n":25,"claim":"md12942-f02b30d8","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Reminders state the penalty","plain_english":"A reminder about a breach must state the penal charge that applies.","rbi_paragraph":"Para 30(7)","rbi_char_offset":27971,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p31","layer":"bankpulse"},{"n":26,"claim":"md12942-f33b3010","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"KEY DATES","heading":"Switch at next renewal","plain_english":"Existing loans move to the new penal charge rules at the next review or renewal.","rbi_paragraph":"Para 30(8)","rbi_char_offset":28156,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p32","layer":"bankpulse"},{"n":27,"claim":"md12942-fb91e0c5","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Tell the borrower at once","plain_english":"Any rise in the instalment or the loan period must be told to the borrower at once.","rbi_paragraph":"Para 31(1)","rbi_char_offset":28691,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p33","layer":"bankpulse"},{"n":28,"claim":"md12942-67c636fa","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No negative amortisation","plain_english":"Stretching a floating rate loan must not leave the balance growing instead of falling.","rbi_paragraph":"Para 31(5)","rbi_char_offset":30530,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p34","layer":"bankpulse"},{"n":29,"claim":"md12942-44e01857","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Statements must be simple","plain_english":"The statements sent to a borrower must be simple and easy to understand.","rbi_paragraph":"Para 31(6)","rbi_char_offset":30900,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p35","layer":"bankpulse"},{"n":30,"claim":"md12942-74042103","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Free prepayment to ₹50 lakh","plain_english":"A middle layer company cannot charge for prepayment on a loan up to ₹50 lakh.","rbi_paragraph":"Para 34(2)","rbi_char_offset":32492,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p36","layer":"bankpulse"},{"n":31,"claim":"md12942-28dbd691","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Charge on the amount repaid","plain_english":"On a term loan, any prepayment charge must be based on the amount being repaid.","rbi_paragraph":"Para 34(2)","rbi_char_offset":33170,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p37","layer":"bankpulse"},{"n":32,"claim":"md12942-233a600b","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Overdraft closure capped","plain_english":"On an overdraft, the closure charge cannot exceed the sanctioned limit.","rbi_paragraph":"Para 34(2)","rbi_char_offset":33371,"weight":"DO IT","role":"All staff","team":null,"products_covered":["working-capital"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p38","layer":"bankpulse"},{"n":33,"claim":"md12942-10d3d865","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Lender's own call is free","plain_english":"No charge applies where the lender itself asks for the loan to be repaid early.","rbi_paragraph":"Para 34(7)","rbi_char_offset":33740,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p39","layer":"bankpulse"},{"n":34,"claim":"md12942-d3702d36","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Disclosed or not charged","plain_english":"A prepayment charge that was not disclosed as required cannot be charged at all.","rbi_paragraph":"Para 34(8)","rbi_char_offset":34118,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p40","layer":"bankpulse"},{"n":35,"claim":"md12942-a8c624b6","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No reviving waived fees","plain_english":"Fees waived earlier cannot be brought back when the loan is repaid early.","rbi_paragraph":"Para 34(9)","rbi_char_offset":34234,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p41","layer":"bankpulse"},{"n":36,"claim":"md12942-e0f35610","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Papers back on time","plain_english":"The sanction letter must state when and where the property papers will be returned.","rbi_paragraph":"Para 37","rbi_char_offset":35011,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p42","layer":"bankpulse"},{"n":37,"claim":"md12942-bf400d11","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"₹5,000 a day for delay","plain_english":"Where the delay is the lender's fault, the borrower gets ₹5,000 for each day of delay.","rbi_paragraph":"Para 39","rbi_char_offset":35918,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Suppose the lender is 12 days late through its own fault. The borrower is owed ₹5,000 for each of those days. That comes to ₹60,000.","anchor":"https://bankpulse.ai/rule/md12942#p43","layer":"bankpulse"},{"n":38,"claim":"md12942-aee7c0a2","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Other rights stay","plain_english":"That payment does not take away any other compensation the law allows.","rbi_paragraph":"Para 41","rbi_char_offset":36547,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p44","layer":"bankpulse"},{"n":39,"claim":"md12942-9f2d2019","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Borrower watches the testing","plain_english":"The borrower must be present when the gold or silver is tested at sanction.","rbi_paragraph":"Para 46","rbi_char_offset":38789,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p45","layer":"bankpulse"},{"n":40,"claim":"md12942-7a032594","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Same papers everywhere","plain_english":"The paperwork must be the same across every branch.","rbi_paragraph":"Para 48","rbi_char_offset":39617,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p46","layer":"bankpulse"},{"n":41,"claim":"md12942-adabf644","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Gold stays in the branch","plain_english":"Gold and silver may be handled only in branches and only by the lender's own staff.","rbi_paragraph":"Para 53","rbi_char_offset":42031,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p47","layer":"bankpulse"},{"n":42,"claim":"md12942-b461735f","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Vaults, not cupboards","plain_english":"The metal may be stored only in branches with a vault fit for the purpose.","rbi_paragraph":"Para 54","rbi_char_offset":42113,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p48","layer":"bankpulse"},{"n":43,"claim":"md12942-7ea27ebc","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Surprise checks required","plain_english":"Internal audit must make surprise checks of the pledged metal and keep a record.","rbi_paragraph":"Para 57","rbi_char_offset":42951,"weight":"DO IT","role":"All staff","team":null,"products_covered":["gold-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p49","layer":"bankpulse"},{"n":44,"claim":"md12942-cba36a8a","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Floor price after two failures","plain_english":"If an auction fails twice, the floor price must be at least 85 per cent of value.","rbi_paragraph":"Para 63","rbi_char_offset":45384,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p50","layer":"bankpulse"},{"n":45,"claim":"md12942-526552c5","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Auction in the same district","plain_english":"The first auction must be held in the district of the lending branch.","rbi_paragraph":"Para 64","rbi_char_offset":45498,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p51","layer":"bankpulse"},{"n":46,"claim":"md12942-099705d0","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Lender cannot bid","plain_english":"The lender and its related parties cannot bid in its own auction.","rbi_paragraph":"Para 65","rbi_char_offset":45795,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p52","layer":"bankpulse"},{"n":47,"claim":"md12942-c164231b","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Full auction account","plain_english":"After the auction the borrower must be told the price fetched and the dues settled.","rbi_paragraph":"Para 66","rbi_char_offset":45923,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p53","layer":"bankpulse"},{"n":48,"claim":"md12942-85ec8c8f","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Damage is the lender's cost","plain_english":"If the pledged metal is damaged while held, the lender pays for the repair.","rbi_paragraph":"Para 67","rbi_char_offset":46473,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p54","layer":"bankpulse"},{"n":49,"claim":"md12942-0087cfa6","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"KEY DATES","heading":"Two years makes it unclaimed","plain_english":"Pledged gold or silver left more than two years after repayment is treated as unclaimed.","rbi_paragraph":"Para 71","rbi_char_offset":47879,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p55","layer":"bankpulse"},{"n":50,"claim":"md12942-8dd2383c","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No tall gold loan claims","plain_english":"Misleading advertisements with unrealistic claims about gold loans are barred.","rbi_paragraph":"Para 73","rbi_char_offset":48374,"weight":"DO IT","role":"All staff","team":null,"products_covered":["gold-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p56","layer":"bankpulse"},{"n":51,"claim":"md12942-2c9cec60","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHO SHOULD ACT","heading":"Board approves microfinance code","plain_english":"The microfinance fair practices code must be approved by the Board.","rbi_paragraph":"Para 76","rbi_char_offset":49063,"weight":"DO IT","role":"All staff","team":null,"products_covered":["microfinance"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p57","layer":"bankpulse"},{"n":52,"claim":"md12942-4f8bfe2d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Code on show","plain_english":"The fair practices code must be displayed in every office and on the website.","rbi_paragraph":"Para 76","rbi_char_offset":49205,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p58","layer":"bankpulse"},{"n":53,"claim":"md12942-70221989","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"One standard agreement","plain_english":"Microfinance loans must use a standard agreement in the borrower's language.","rbi_paragraph":"Para 77","rbi_char_offset":49354,"weight":"DO IT","role":"All staff","team":null,"products_covered":["microfinance"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p59","layer":"bankpulse"},{"n":54,"claim":"md12942-946a1f2d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Loan card in plain words","plain_english":"Every entry in the loan card must be in a language the borrower understands.","rbi_paragraph":"Para 79","rbi_char_offset":49927,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p60","layer":"bankpulse"},{"n":55,"claim":"md12942-5f23f682","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Other products need consent","plain_english":"Any non-credit product needs full consent, with its fees written in the loan card.","rbi_paragraph":"Para 80","rbi_char_offset":50011,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p61","layer":"bankpulse"},{"n":56,"claim":"md12942-17ef6ebb","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Microfinance prepayment free","plain_english":"No prepayment charge may be taken on a microfinance loan.","rbi_paragraph":"Para 81","rbi_char_offset":50241,"weight":"DO IT","role":"All staff","team":null,"products_covered":["microfinance"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p62","layer":"bankpulse"},{"n":57,"claim":"md12942-046696c6","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Late charge on overdue only","plain_english":"A delayed payment charge applies to the overdue amount, not the whole loan.","rbi_paragraph":"Para 81","rbi_char_offset":50345,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p63","layer":"bankpulse"},{"n":58,"claim":"md12942-0643f7f5","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHO SHOULD ACT","heading":"Board policy on staff conduct","plain_english":"The Board must approve a policy on staff conduct, hiring, training and monitoring.","rbi_paragraph":"Para 86","rbi_char_offset":51386,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p64","layer":"bankpulse"},{"n":59,"claim":"md12942-ff48f0b1","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Training covers behaviour","plain_english":"Staff training must include how to behave properly with customers.","rbi_paragraph":"Para 86","rbi_char_offset":51663,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p65","layer":"bankpulse"},{"n":60,"claim":"md12942-c1b13b71","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Conduct affects pay","plain_english":"How staff treat customers must count in how they are paid.","rbi_paragraph":"Para 86","rbi_char_offset":51762,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p66","layer":"bankpulse"},{"n":61,"claim":"md12942-ddf6659f","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Free training for borrowers","plain_english":"Any training offered to borrowers must be free of cost.","rbi_paragraph":"Para 88","rbi_char_offset":51994,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p67","layer":"bankpulse"},{"n":62,"claim":"md12942-e99c165a","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Recovery at an agreed place","plain_english":"Recovery must happen at a place agreed between the borrower and the lender.","rbi_paragraph":"Para 90","rbi_char_offset":52325,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p68","layer":"bankpulse"},{"n":63,"claim":"md12942-a0b223ec","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"No harsh recovery","plain_english":"Neither the lender nor its agent may use harsh methods to recover dues.","rbi_paragraph":"Para 91","rbi_char_offset":52681,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p69","layer":"bankpulse"},{"n":64,"claim":"md12942-dc825e23","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Separate recovery complaints","plain_english":"There must be a separate route for complaints about recovery.","rbi_paragraph":"Para 92","rbi_char_offset":53318,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p70","layer":"bankpulse"},{"n":65,"claim":"md12942-7590d713","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Told at disbursal","plain_english":"The borrower must be told about that route when the loan money is paid out.","rbi_paragraph":"Para 92","rbi_char_offset":53397,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p71","layer":"bankpulse"},{"n":66,"claim":"md12942-0087ae6d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Checks before hiring agents","plain_english":"A due diligence process is required before engaging any recovery agent.","rbi_paragraph":"Para 94","rbi_char_offset":53675,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p72","layer":"bankpulse"},{"n":67,"claim":"md12942-087a2d5d","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Police check on agents","plain_english":"Agent staff must be checked, and that check includes police verification.","rbi_paragraph":"Para 94","rbi_char_offset":53894,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p73","layer":"bankpulse"},{"n":68,"claim":"md12942-c3e9ca22","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Borrower told who calls","plain_english":"The borrower must be given the recovery agent's details before recovery starts.","rbi_paragraph":"Para 95","rbi_char_offset":54164,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p74","layer":"bankpulse"},{"n":69,"claim":"md12942-93a03c19","page_group":"Chapter III. Responsible Lending Conduct","stored_section":"WHAT CHANGES","heading":"Agent list on the website","plain_english":"The current list of recovery agencies must be published on the website.","rbi_paragraph":"Para 97","rbi_char_offset":54842,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p75","layer":"bankpulse"},{"n":1,"claim":"md12942-825bbba2","page_group":"Chapter IV. Miscellaneous","stored_section":"WHAT CHANGES","heading":"Lockers are not regulated","plain_english":"A company offering lockers must tell customers RBI does not regulate that service.","rbi_paragraph":"Para 104","rbi_char_offset":58400,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p76","layer":"bankpulse"},{"n":2,"claim":"md12942-cc468a6c","page_group":"Chapter IV. Miscellaneous","stored_section":"WHAT CHANGES","heading":"Court order to follow","plain_english":"The lender must take steps to comply with the Supreme Court order of 30 April 2025.","rbi_paragraph":"Para 105","rbi_char_offset":58971,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p77","layer":"bankpulse"},{"n":1,"claim":"md12942-1079c38d","page_group":"Chapter V. Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"Old actions preserved","plain_english":"Anything already done under the old rules stays governed by those old rules.","rbi_paragraph":"Para 107","rbi_char_offset":59874,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p78","layer":"bankpulse"},{"n":2,"claim":"md12942-76f8c80d","page_group":"Chapter V. Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"Approvals carried over","plain_english":"Approvals given under the cancelled rules are now treated as given under these rules.","rbi_paragraph":"Para 107","rbi_char_offset":60053,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12942#p79","layer":"bankpulse"}],"actions":[],"amendments":[{"id":"nt13431","title":"Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Amendment Directions, 2026","date":"Apr 29, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13431&Mode=0","order":1,"layer":"rbi_source"},{"id":"nt13493","title":"Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Second Amendment Directions, 2026","date":"Jun 15, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13493&Mode=0","order":2,"layer":"rbi_source"},{"id":"nt13672","title":"Reserve Bank of India (Non-Banking Financial Companies - Responsible Business Conduct) Third Amendment Directions, 2026","date":"Aug 06, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13672&Mode=0","order":3,"layer":"rbi_source"}],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}