{"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":"md13075","title":"Reserve Bank of India (Local Area Banks – Credit Risk Management) Directions, 2025 (Updated as on July 01, 2026)","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13075","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":"Local area banks","class_code":"LAB","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13075","mode":"four_dates_v1","published":{"label":"Published","value":"November 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/md13075.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13075","document_date":"November 28, 2025","read_by_bankpulse":"2026-08-21 16:17:39 UTC","text_sha256":"2c3ec6a9d48f80f24bdfc3abf93ca5f1b953cb9933175922c923738e7dd53afb","word_count":null,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":27,"points_naming_an_rbi_paragraph":27,"points_stored":27,"actions":0,"amendments":3},"points":[{"n":1,"claim":"md13075-e6b95cfd","page_group":"Opening paragraphs","stored_section":"KEY DATES","heading":"Latest update","plain_english":"The document was last updated on July 1, 2026.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":1772,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p1","layer":"bankpulse"},{"n":2,"claim":"md13075-a963eb5e","page_group":"Opening paragraphs","stored_section":"KEY DATES","heading":"Date of issue","plain_english":"RBI issued these Directions on November 28, 2025.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":1883,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p2","layer":"bankpulse"},{"n":3,"claim":"md13075-a7778b88","page_group":"Opening paragraphs","stored_section":"THE CORE IDEA","heading":"Credit risk significance","plain_english":"Local Area Banks face several risks, and credit risk is one of the most significant among them.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":2870,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p3","layer":"bankpulse"},{"n":4,"claim":"md13075-acebbb37","page_group":"Opening paragraphs","stored_section":"THE CORE IDEA","heading":"Purpose","plain_english":"RBI issues this rulebook so Local Area Banks manage credit risk consistently, since credit risk is one of their biggest risks.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":3839,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p4","layer":"bankpulse"},{"n":1,"claim":"md13075-9db77ee8","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Start date","plain_english":"These Directions started working immediately once RBI issued them.","rbi_paragraph":"Para 2","rbi_char_offset":4075,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"There is no gap here between issue and effect. The Directions come into effect immediately upon issuance. A bank cannot wait for a separate start date, because there is none.","anchor":"https://bankpulse.ai/rule/md13075#p5","layer":"bankpulse"},{"n":2,"claim":"md13075-261774a1","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These Directions apply only to Local Area Banks, called banks in this document.","rbi_paragraph":"Para 3","rbi_char_offset":4162,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p6","layer":"bankpulse"},{"n":1,"claim":"md13075-14095054","page_group":"Chapter II. Board Approved Policies","stored_section":"WHO SHOULD ACT","heading":"Board-approved credit policy","plain_english":"A bank's Board must approve a full policy on credit risk management.","rbi_paragraph":"Para 4(2)","rbi_char_offset":14585,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p7","layer":"bankpulse"},{"n":1,"claim":"md13075-14ea0d93","page_group":"Chapter III. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"Own-share lending ban","plain_english":"A bank cannot grant loans or advances against the security of its own shares.","rbi_paragraph":"Para 6(1)","rbi_char_offset":15382,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p8","layer":"bankpulse"},{"n":2,"claim":"md13075-347499e9","page_group":"Chapter III. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"No loans to directors","plain_english":"A bank cannot commit to granting loans or advances to its own directors or linked firms.","rbi_paragraph":"Para 7(1)","rbi_char_offset":15545,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p9","layer":"bankpulse"},{"n":1,"claim":"md13075-4552e9db","page_group":"Chapter IIIA. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Related-party materiality cap","plain_english":"Loans to related parties need a materiality threshold in the credit policy, capped at 10 lakh rupees.","rbi_paragraph":"Para 16(3)","rbi_char_offset":22861,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"The credit policy must set a materiality threshold for loans to related parties. It may not be higher than ₹10 lakh. A policy naming ₹15 lakh would be outside the rule.","anchor":"https://bankpulse.ai/rule/md13075#p10","layer":"bankpulse"},{"n":2,"claim":"md13075-c2dd8b86","page_group":"Chapter IIIA. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Board approval threshold","plain_english":"Loans above the materiality threshold need approval from the Board or the Committee on Lending to Related Parties.","rbi_paragraph":"Para 16(3)","rbi_char_offset":23023,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p11","layer":"bankpulse"},{"n":3,"claim":"md13075-37fc7103","page_group":"Chapter IIIA. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Recusal rule","plain_english":"Directors and key staff must recuse themselves from decisions on loans involving themselves or their related parties.","rbi_paragraph":"Para 16(3)","rbi_char_offset":23360,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p12","layer":"bankpulse"},{"n":4,"claim":"md13075-21d82579","page_group":"Chapter IIIA. Regulatory Restrictions","stored_section":"WHO SHOULD ACT","heading":"Quarterly internal audit","plain_english":"Internal auditors must review related-party loans at least once every quarter.","rbi_paragraph":"Para 16(3)","rbi_char_offset":24238,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p13","layer":"bankpulse"},{"n":5,"claim":"md13075-d3da8227","page_group":"Chapter IIIA. Regulatory Restrictions","stored_section":"IMPACT","heading":"Penalties for breach","plain_english":"Breaking or dodging these rules can bring monetary penalties, forced provisioning, or forensic audits.","rbi_paragraph":"Para 16(3)","rbi_char_offset":25147,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p14","layer":"bankpulse"},{"n":1,"claim":"md13075-b843e115","page_group":"Chapter IV. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Unhedged forex exposure","plain_english":"Banks must assess unhedged foreign currency exposure of borrowers and hold extra provisioning and capital against it.","rbi_paragraph":"Para 17","rbi_char_offset":25451,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p15","layer":"bankpulse"},{"n":2,"claim":"md13075-7170e362","page_group":"Chapter IV. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"75% EBID trigger","plain_english":"Borrowers whose potential forex loss tops 75% of EBID trigger 80 basis points extra provisioning and a higher risk weight.","rbi_paragraph":"Para 19(3)","rbi_char_offset":29344,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A borrower's likely loss on foreign exchange comes to 80 per cent of earnings before interest and depreciation. That is more than 75 per cent. So the bank adds 80 basis points of provisioning and raises the risk weight by 25 percentage points.","anchor":"https://bankpulse.ai/rule/md13075#p16","layer":"bankpulse"},{"n":1,"claim":"md13075-8ba6f331","page_group":"Chapter V. Legal Entity Identifier (LEI) for Borrowers","stored_section":"WHAT CHANGES","heading":"LEI code requirement","plain_english":"Non-individual borrowers with 5 crore rupees or more exposure must get a Legal Entity Identifier code.","rbi_paragraph":"Para 25","rbi_char_offset":35689,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p17","layer":"bankpulse"},{"n":2,"claim":"md13075-af47dfbf","page_group":"Chapter V. Legal Entity Identifier (LEI) for Borrowers","stored_section":"WHAT CHANGES","heading":"No LEI, no loan","plain_english":"Borrowers who fail to get an LEI code cannot get a new loan or a renewal.","rbi_paragraph":"Para 26","rbi_char_offset":36597,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p18","layer":"bankpulse"},{"n":1,"claim":"md13075-2554e90d","page_group":"Chapter VI. Valuation of Properties - Empanelment of Valuers","stored_section":"WHAT CHANGES","heading":"Valuer independence","plain_english":"Property valuers must have no direct or indirect interest in the property they value.","rbi_paragraph":"Para 31(2)","rbi_char_offset":38443,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p19","layer":"bankpulse"},{"n":2,"claim":"md13075-ab7d7dcb","page_group":"Chapter VI. Valuation of Properties - Empanelment of Valuers","stored_section":"WHAT CHANGES","heading":"Dual valuation rule","plain_english":"A bank must get at least two independent valuation reports for properties worth 50 crore rupees or more.","rbi_paragraph":"Para 31(3)","rbi_char_offset":38504,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p20","layer":"bankpulse"},{"n":1,"claim":"md13075-91e8edfa","page_group":"Chapter VII. Filing of Security Interest relating to Immovable (other than equitable mortgage), Movable, and Intangible Assets in CERSAI","stored_section":"WHAT CHANGES","heading":"CERSAI filing duty","plain_english":"Banks must keep filing every security interest transaction with the CERSAI registry on an ongoing basis.","rbi_paragraph":"Para 38","rbi_char_offset":43333,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p21","layer":"bankpulse"},{"n":1,"claim":"md13075-9ee56caf","page_group":"Chapter VIIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Small-exposure current accounts","plain_english":"A bank can freely run current or overdraft accounts if banking-system exposure to the customer stays under 10 crore rupees.","rbi_paragraph":"Para 38(5)","rbi_char_offset":44333,"weight":"DO IT","role":"All staff","team":null,"products_covered":["deposit-account","working-capital"],"products_excluded":[],"bankpulse_example":"A customer's borrowing across the banking system is ₹6 crore. That is less than ₹10 crore, so any bank may run its current account without restriction. At ₹12 crore the restrictions apply.","anchor":"https://bankpulse.ai/rule/md13075#p22","layer":"bankpulse"},{"n":2,"claim":"md13075-0179a83a","page_group":"Chapter VIIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"10 percent exposure share","plain_english":"A lender must hold at least a 10 per cent share of the system's exposure to the borrower.","rbi_paragraph":"Para 38(1)","rbi_char_offset":45255,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A lender must hold at least a 10 per cent share of the system's exposure to that borrower. Suppose the system's exposure is ₹500 crore. Then a share of ₹50 crore meets it, and ₹40 crore does not.","anchor":"https://bankpulse.ai/rule/md13075#p23","layer":"bankpulse"},{"n":3,"claim":"md13075-4a63fe38","page_group":"Chapter VIIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Two-day sweep rule","plain_english":"Money reaching a collection account must move to the borrower's designated account within two working days.","rbi_paragraph":"Para 38(1)","rbi_char_offset":46629,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p24","layer":"bankpulse"},{"n":4,"claim":"md13075-5374278e","page_group":"Chapter VIIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Half-yearly account checks","plain_english":"Banks must check compliance on these accounts at least once every half year.","rbi_paragraph":"Para 38(3)","rbi_char_offset":48573,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p25","layer":"bankpulse"},{"n":1,"claim":"md13075-ea8f526b","page_group":"Chapter VIII. Repeal and other provisions","stored_section":"WHAT IT REPLACES","heading":"Older rules repealed","plain_english":"This document repeals all earlier RBI instructions on credit risk management for Local Area Banks.","rbi_paragraph":"Para 39","rbi_char_offset":51615,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p26","layer":"bankpulse"},{"n":2,"claim":"md13075-1079c38d","page_group":"Chapter VIII. Repeal and other provisions","stored_section":"WHAT IT REPLACES","heading":"Old actions preserved","plain_english":"Anything already done under the repealed rules stays governed by those old provisions.","rbi_paragraph":"Para 40","rbi_char_offset":51975,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13075#p27","layer":"bankpulse"}],"actions":[],"amendments":[{"id":"nt13223","title":"Reserve Bank of India (Local Area Banks – Credit Risk Management) – Amendment Directions, 2025","date":"Dec 11, 2025","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13223&Mode=0","order":1,"layer":"rbi_source"},{"id":"nt13251","title":"Reserve Bank of India (Local Area Banks – Credit Risk Management) – Amendment Directions, 2026","date":"Jan 05, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13251&Mode=0","order":2,"layer":"rbi_source"},{"id":"nt13422","title":"Reserve Bank of India (Local Area Banks – Credit Risk Management) Second Amendment Directions, 2026","date":"Apr 29, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13422&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."}