Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025
UR
- Applies toSmall finance banks
- StatusIn force
- RBI text changedRBI updated this document on October 19, 2026. BankPulse is re-reading it.
- IssuedNovember 28, 2025
- Amendmentsnone tracked
- Length29 points in 5 sections · 3 min read
The four dates on this rule
- PublishedNovember 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNovember 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Opening paragraphs
1. One combined rulebook
This book holds RBI's mixed rules for small finance banks in one place.
Chapter I. Preliminary
1. Start date
The rules took effect at once, from 28 November 2025.
2. Who is covered
These rules apply to every small finance bank.
3. Primary dealers included
One rule, on corporate bond reporting, also covers primary dealers.
Chapter II. Role of the Board
1. Board-approved policies
The board must approve policies on donations, staff certificates and sensitive posts.
Chapter III. Depositor Education and Awareness Fund
Do it
1. Ten-year unclaimed rule
Money left untouched for ten years or more goes to the RBI Fund.
2. Interest on Fund deposits
Since 11 May 2021, banks pay 3 percent interest on such deposits.
3. Fund account operators
A bank may name up to 10 officers to operate its Fund account.
4. Monthly Fund transfer
Banks send unclaimed money to the Fund in the last five working days of a month.
5. Refund claim window
Banks file refund claims in the first 10 working days of each month.
6. Maker-checker rule
Every Fund deposit and claim entry needs a maker and a checker.
7. Reconciliation certificate dates
The reconciliation certificate is due by 30 April and 31 October.
8. Auditor certificate deadline
The statutory auditor's yearly certificate must reach RBI by 30 September.
9. Permanent record keeping
Records of accounts sent to the Fund are kept for ever.
10. Post-refund record keeping
After a refund, the bank keeps those papers for at least five years.
Chapter IV. Services and Market Operations
1. Metal forward contract limit
A gold, silver or platinum forward contract may not run past six months.
2. Rupee derivative cap
Non-option rupee derivative contracts must stay within 0.25 percent of net worth.
3. Option premium payment
A deferred option premium must be paid at least once every quarter.
Chapter VI. Financial Conduct and Prohibited Activities
1. Donation limit
A bank may give away up to one percent of last year's published profit.
2. Loss-year donation cap
A bank in loss may give only ₹5 lakh in a year.
BankPulse example. A bank that made a loss last year may give ₹5 lakh in donations in the year, and no more. If it has already given ₹4 lakh, only ₹1 lakh is left.
3. Yearly donation review
The bank puts a yearly review of its donations before the board.
4. Prize chit checks
Banks must check that a firm is not running a banned prize chit.
5. No lottery ties
A bank must not tie itself to any lottery scheme.
Chapter VII. Taxation and Accounting Related Matters
1. Tax officer requests
An income tax officer may seek details of deposits of ₹50,000 or more.
BankPulse example. An income tax officer may ask about deposits of ₹50,000 or above, and must record the reasons first. So a fixed deposit of ₹80,000 can be asked about. One of ₹20,000 cannot.
Chapter VIII. Human Resource and Capacity Building
1. Course certificate rule
Staff must earn a course certificate before they take up listed key roles.
Chapter IX. Operational and Administrative Matters
1. Mandatory leave rule
Staff in sensitive posts must take at least 10 working days leave each year.
2. Staff rotation policy
Each bank must put a staff rotation policy in place.
Chapter X. Repeal Provisions
1. Older rules repealed
Old rules on these same topics for small finance banks now stand repealed.
2. Earlier repeals stand
Rules already repealed before this book stay repealed.
The same subject for other kinds of institution
The same subject for other kinds of institution.
Other RBI rules for small finance banks
RBI compliance officer and compliance function rules for small finance banks 2026
RBI credit bureau reporting rules for small finance banks 2025
RBI credit card and debit card rules for small finance banks 2025
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