{"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":"md13116","title":"Reserve Bank of India (Small Finance Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025 (Updated as on May 18, 2026)","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13116","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":"Small finance banks","class_code":"SFB","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13116","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/md13116.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13116","document_date":"Nov 28, 2025","read_by_bankpulse":"2026-08-21 16:16:12 UTC","text_sha256":"36480d9e0b273029737861538c5eb637d6fe4add903af75a1dc5adb756b0b91e","word_count":19109,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":70,"points_naming_an_rbi_paragraph":70,"points_stored":70,"actions":0,"amendments":1},"points":[{"n":1,"claim":"md13116-71191e0f","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"Rating letter within a month","plain_english":"The rating letter must be under one month old and the rationale under one year.","rbi_paragraph":"Para 4(6)","rbi_char_offset":7544,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p1","layer":"bankpulse"},{"n":2,"claim":"md13116-3b92328e","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Investment rules for SFBs","plain_english":"This paper sets how small finance banks must class and value what they hold.","rbi_paragraph":"Para 1","rbi_char_offset":3915,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p2","layer":"bankpulse"},{"n":3,"claim":"md13116-3c9485f4","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"Rating letter in the offer","plain_english":"The rating letter and the reasoning should form part of the offer document.","rbi_paragraph":"Para 4(6)","rbi_char_offset":7441,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p3","layer":"bankpulse"},{"n":4,"claim":"md13116-9ce1e83d","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"Overseas ratings named","plain_english":"For overseas paper the rating must come from the agencies named for capital work.","rbi_paragraph":"Para 4(6)","rbi_char_offset":7937,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p4","layer":"bankpulse"},{"n":5,"claim":"md13116-7b78bc30","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"Start date","plain_english":"These Directions came into effect on the day RBI issued them.","rbi_paragraph":"Para 2","rbi_char_offset":4113,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p5","layer":"bankpulse"},{"n":6,"claim":"md13116-13e9a109","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These Directions apply to every small finance bank.","rbi_paragraph":"Para 3","rbi_char_offset":4180,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p6","layer":"bankpulse"},{"n":7,"claim":"md13116-ff22043c","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Thin trading is no market","plain_english":"A share barely traded on an exchange is not treated as having an active market.","rbi_paragraph":"Para 4(1)","rbi_char_offset":5204,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p7","layer":"bankpulse"},{"n":8,"claim":"md13116-5124a94b","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Influence is not control","plain_english":"Significant influence is a say in policy, not control over it.","rbi_paragraph":"Para 4(3)","rbi_char_offset":5800,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p8","layer":"bankpulse"},{"n":9,"claim":"md13116-ec3956ac","page_group":"Chapter I. Preliminary","stored_section":"WHO SHOULD ACT","heading":"Rating must still stand","plain_english":"On a secondary market buy the rating must be in force and checked in the monthly bulletin.","rbi_paragraph":"Para 4(6)","rbi_char_offset":7748,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p9","layer":"bankpulse"},{"n":10,"claim":"md13116-70c44f76","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"An exchange abroad","plain_english":"Abroad, an exchange means one the local securities regulator recognises.","rbi_paragraph":"Para 4(12)","rbi_char_offset":9132,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p10","layer":"bankpulse"},{"n":11,"claim":"md13116-d4627449","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Low coupon bonds defined","plain_english":"A low coupon bond pays little and is redeemed with a large premium at the end.","rbi_paragraph":"Para 4(24)","rbi_char_offset":12053,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p11","layer":"bankpulse"},{"n":12,"claim":"md13116-beb0e7a0","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Rated means a live rating","plain_english":"A rated security is one rated by a SEBI registered agency and carrying a valid rating.","rbi_paragraph":"Para 4(30)","rbi_char_offset":13085,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p12","layer":"bankpulse"},{"n":13,"claim":"md13116-0a9476d5","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Inputs nobody can see","plain_english":"Unobservable inputs are used where market prices and curves are not available.","rbi_paragraph":"Para 4(42)","rbi_char_offset":15865,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p13","layer":"bankpulse"},{"n":14,"claim":"md13116-d3b7d41a","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Unrated means no rating","plain_english":"An unrated security is one with no current and valid rating.","rbi_paragraph":"Para 4(43)","rbi_char_offset":16120,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p14","layer":"bankpulse"},{"n":1,"claim":"md13116-477ca107","page_group":"Chapter II. Role of the Board","stored_section":"KEY DATES","heading":"Two months to report","plain_english":"The half-yearly book review must reach the Board within two months, by end May and end November.","rbi_paragraph":"Para 14","rbi_char_offset":18117,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p15","layer":"bankpulse"},{"n":2,"claim":"md13116-543742ea","page_group":"Chapter II. Role of the Board","stored_section":"WHO SHOULD ACT","heading":"Board approves the policy","plain_english":"The Board must approve the investment policy.","rbi_paragraph":"Para 6","rbi_char_offset":16729,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p16","layer":"bankpulse"},{"n":3,"claim":"md13116-5ae34520","page_group":"Chapter II. Role of the Board","stored_section":"WHO SHOULD ACT","heading":"Investment Committee","plain_english":"The Board must set up an Investment Committee to handle all equity and share investments.","rbi_paragraph":"Para 7","rbi_char_offset":16814,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p17","layer":"bankpulse"},{"n":4,"claim":"md13116-996897b2","page_group":"Chapter II. Role of the Board","stored_section":"WHO SHOULD ACT","heading":"Board sets the impairment bar","plain_english":"The Board must set the bar for treating an investment in a group firm as impaired.","rbi_paragraph":"Para 8","rbi_char_offset":17073,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p18","layer":"bankpulse"},{"n":5,"claim":"md13116-b9b7ce4b","page_group":"Chapter II. Role of the Board","stored_section":"WHO SHOULD ACT","heading":"Board owns the risk systems","plain_english":"The Board must see that systems exist to catch and weigh non-SLR investment risk.","rbi_paragraph":"Para 11","rbi_char_offset":17527,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p19","layer":"bankpulse"},{"n":6,"claim":"md13116-9fbefeed","page_group":"Chapter II. Role of the Board","stored_section":"KEY DATES","heading":"Non-SLR review each quarter","plain_english":"The Board must look at non-SLR investments at least once a quarter.","rbi_paragraph":"Para 12","rbi_char_offset":17705,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p20","layer":"bankpulse"},{"n":7,"claim":"md13116-822ad98a","page_group":"Chapter II. Role of the Board","stored_section":"WHO SHOULD ACT","heading":"Board told after a breach","plain_english":"The Board must be told after the total limit for one broker is crossed.","rbi_paragraph":"Para 13","rbi_char_offset":17848,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p21","layer":"bankpulse"},{"n":8,"claim":"md13116-76b8233e","page_group":"Chapter II. Role of the Board","stored_section":"KEY DATES","heading":"Half-yearly portfolio review","plain_english":"The Board must review the whole book twice a year, at 31 March and 30 September.","rbi_paragraph":"Para 14","rbi_char_offset":17996,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p22","layer":"bankpulse"},{"n":9,"claim":"md13116-f804e80e","page_group":"Chapter II. Role of the Board","stored_section":"WHAT CHANGES","heading":"Category moves need Board","plain_english":"Moving an investment between HTM, AFS and FVTPL needs Board approval.","rbi_paragraph":"Para 9","rbi_char_offset":17221,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p23","layer":"bankpulse"},{"n":10,"claim":"md13116-6f44df5b","page_group":"Chapter II. Role of the Board","stored_section":"WHAT CHANGES","heading":"HTM sale policy","plain_english":"Selling investments out of the Held to Maturity category needs a Board-approved policy.","rbi_paragraph":"Para 10","rbi_char_offset":17370,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p24","layer":"bankpulse"},{"n":1,"claim":"md13116-e2f3fc25","page_group":"Chapter III. General Guidelines","stored_section":"THE CORE IDEA","heading":"Invest only as told here","plain_english":"Investment work must stay within the terms these Directions set.","rbi_paragraph":"Para 15","rbi_char_offset":18343,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p25","layer":"bankpulse"},{"n":2,"claim":"md13116-66e7a4e7","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"A full written policy","plain_english":"A full investment policy approved by the Board must be adopted.","rbi_paragraph":"Para 16","rbi_char_offset":18455,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A lender cannot buy securities on the strength of practice alone. It must adopt a comprehensive investment policy, and the Board must approve it. A policy the Board has not seen does not count.","anchor":"https://bankpulse.ai/rule/md13116#p26","layer":"bankpulse"},{"n":3,"claim":"md13116-202dba24","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"Sound practice in dealing","plain_english":"The policy must keep dealing in securities within sound business practice.","rbi_paragraph":"Para 18","rbi_char_offset":19309,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p27","layer":"bankpulse"},{"n":4,"claim":"md13116-1e2df323","page_group":"Chapter III. General Guidelines","stored_section":"WHAT CHANGES","heading":"Limits inside the policy","plain_english":"The policy must set limits for each kind of bond and each issuer.","rbi_paragraph":"Para 19","rbi_char_offset":19405,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p28","layer":"bankpulse"},{"n":5,"claim":"md13116-8c69b752","page_group":"Chapter III. General Guidelines","stored_section":"WHAT CHANGES","heading":"Equity gets its own rules","plain_english":"The policy must set out how equity is bought and how its risk is run.","rbi_paragraph":"Para 21","rbi_char_offset":19984,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p29","layer":"bankpulse"},{"n":6,"claim":"md13116-346680e1","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"A team for equity research","plain_english":"An equity research team must be built to match the size of the business.","rbi_paragraph":"Para 21","rbi_char_offset":20085,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p30","layer":"bankpulse"},{"n":7,"claim":"md13116-f92a9484","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"Committee decides on equity","plain_english":"An investment committee set by the Board must decide every equity purchase.","rbi_paragraph":"Para 22","rbi_char_offset":20358,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p31","layer":"bankpulse"},{"n":8,"claim":"md13116-8846ba42","page_group":"Chapter III. General Guidelines","stored_section":"THE CORE IDEA","heading":"Same test as a loan","plain_english":"An investment proposal must face the same credit test as a loan proposal.","rbi_paragraph":"Para 23","rbi_char_offset":20553,"weight":"DO IT","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p32","layer":"bankpulse"},{"n":9,"claim":"md13116-77c362b5","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"Check the defaulter lists","plain_english":"Defaulter lists from the credit bureaus and CRILC must be checked before buying.","rbi_paragraph":"Para 24","rbi_char_offset":20641,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p33","layer":"bankpulse"},{"n":10,"claim":"md13116-3ece13fd","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"Do your own rating","plain_english":"Own credit work must be done even on rated paper; outside ratings are not enough.","rbi_paragraph":"Para 25","rbi_char_offset":20915,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p34","layer":"bankpulse"},{"n":11,"claim":"md13116-6aa1505f","page_group":"Chapter III. General Guidelines","stored_section":"KEY DATES","heading":"Track the issuer often","plain_english":"The issuer's health must be tracked each quarter or half year to catch rating drift.","rbi_paragraph":"Para 26","rbi_char_offset":21252,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p35","layer":"bankpulse"},{"n":12,"claim":"md13116-890dd05b","page_group":"Chapter III. General Guidelines","stored_section":"WHO SHOULD ACT","heading":"Settle as the regulator says","plain_english":"Trades must be settled the way the regulator concerned lays down.","rbi_paragraph":"Para 27","rbi_char_offset":21393,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p36","layer":"bankpulse"},{"n":13,"claim":"md13116-96b35993","page_group":"Chapter III. General Guidelines","stored_section":"WHAT CHANGES","heading":"Demat holding only","plain_english":"Banks must hold all their investment securities only in demat form.","rbi_paragraph":"Para 28","rbi_char_offset":21515,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p37","layer":"bankpulse"},{"n":14,"claim":"md13116-092bc1fb","page_group":"Chapter III. General Guidelines","stored_section":"WHAT CHANGES","heading":"Dealer work in the policy","plain_english":"Where primary dealer work is done in-house, the policy must cover it.","rbi_paragraph":"Para 29","rbi_char_offset":21681,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p38","layer":"bankpulse"},{"n":15,"claim":"md13116-e1a558f5","page_group":"Chapter III. General Guidelines","stored_section":"WHAT CHANGES","heading":"Rating gates for bonds","plain_english":"Bond buying needs entry level ratings and limits by industry, maturity and issuer.","rbi_paragraph":"Para 20","rbi_char_offset":19734,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p39","layer":"bankpulse"},{"n":16,"claim":"md13116-72e86eba","page_group":"Chapter III. General Guidelines","stored_section":"WHAT CHANGES","heading":"Harder look at outsiders","plain_english":"Paper issued by a firm that is not a borrower needs a harder look.","rbi_paragraph":"Para 25","rbi_char_offset":21013,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p40","layer":"bankpulse"},{"n":1,"claim":"md13116-3e38c486","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Five per cent test","plain_english":"Selling more than five per cent of the opening held to maturity book is significant.","rbi_paragraph":"Para 33(2)","rbi_char_offset":26750,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p41","layer":"bankpulse"},{"n":2,"claim":"md13116-ebe5c8b4","page_group":"Chapter IV. Classification of Investments","stored_section":"THE CORE IDEA","heading":"Equity cannot be HTM","plain_english":"Equity shares fail the cash flow test and cannot sit in held to maturity.","rbi_paragraph":"Para 34(4)","rbi_char_offset":27778,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p42","layer":"bankpulse"},{"n":3,"claim":"md13116-1670afe0","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Three investment categories","plain_english":"Banks must sort every investment into one of three categories: HTM, AFS or FVTPL.","rbi_paragraph":"Para 31","rbi_char_offset":22294,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p43","layer":"bankpulse"},{"n":4,"claim":"md13116-da1800c9","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Category fixed before buying","plain_english":"The category must be fixed before or at purchase and the choice written down.","rbi_paragraph":"Para 31","rbi_char_offset":22661,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p44","layer":"bankpulse"},{"n":5,"claim":"md13116-c776e286","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"A trading sub-book","plain_english":"A held for trading sub-book must be made inside fair value through profit.","rbi_paragraph":"Para 39","rbi_char_offset":32340,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p45","layer":"bankpulse"},{"n":6,"claim":"md13116-776d6691","page_group":"Chapter IV. Classification of Investments","stored_section":"KEY DATES","heading":"Value the trading book daily","plain_english":"Trading book instruments must be fair valued every day and the change taken to profit.","rbi_paragraph":"Para 39(2)","rbi_char_offset":32709,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p46","layer":"bankpulse"},{"n":7,"claim":"md13116-ae00bb77","page_group":"Chapter IV. Classification of Investments","stored_section":"WHO SHOULD ACT","heading":"RBI must clear a deviation","plain_english":"Leaving the set list needs a written request to RBI and its clear approval.","rbi_paragraph":"Para 39(7)","rbi_char_offset":37039,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p47","layer":"bankpulse"},{"n":8,"claim":"md13116-16de1cff","page_group":"Chapter IV. Classification of Investments","stored_section":"WHO SHOULD ACT","heading":"Write down every deviation","plain_english":"Every departure from the set list must be written down as it happens.","rbi_paragraph":"Para 39(3)","rbi_char_offset":37371,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p48","layer":"bankpulse"},{"n":9,"claim":"md13116-2fad3bd4","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Held for Trading placement","plain_english":"Held for Trading is now a sub-category inside Fair Value through Profit and Loss.","rbi_paragraph":"Para 31","rbi_char_offset":22545,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p49","layer":"bankpulse"},{"n":10,"claim":"md13116-bdec0ba0","page_group":"Chapter IV. Classification of Investments","stored_section":"THE CORE IDEA","heading":"Repo does not break it","plain_english":"A repo of a security does not clash with holding it to maturity.","rbi_paragraph":"Para 33(2)","rbi_char_offset":26520,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p50","layer":"bankpulse"},{"n":11,"claim":"md13116-f8331ba3","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Two tests for HTM","plain_english":"Held to maturity needs both a plain cash flow and the aim of holding to the end.","rbi_paragraph":"Para 35(3)","rbi_char_offset":28727,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p51","layer":"bankpulse"},{"n":12,"claim":"md13116-13aab7b4","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"A put looks like selling","plain_english":"Using a put option before maturity is normally treated as a sale out of the book.","rbi_paragraph":"Para 35(3)","rbi_char_offset":29010,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p52","layer":"bankpulse"},{"n":13,"claim":"md13116-927cd960","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Unless the credit turns","plain_english":"A put used after a downgrade or a default does not spoil the holding aim.","rbi_paragraph":"Para 35(3)","rbi_char_offset":29197,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p53","layer":"bankpulse"},{"n":14,"claim":"md13116-42b93b9f","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"Two tests for AFS","plain_english":"Available for sale needs both the aim of collecting cash flows and of selling.","rbi_paragraph":"Para 36(1)","rbi_char_offset":29540,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p54","layer":"bankpulse"},{"n":15,"claim":"md13116-3cb4a58e","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"A one-time equity election","plain_english":"At first entry a one-time choice may put non-trading equity into available for sale.","rbi_paragraph":"Para 36(2)","rbi_char_offset":29814,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p55","layer":"bankpulse"},{"n":16,"claim":"md13116-9f2133cb","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"The rest is fair valued","plain_english":"A security that fits neither of the first two books goes to fair value through profit.","rbi_paragraph":"Para 38","rbi_char_offset":31326,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p56","layer":"bankpulse"},{"n":17,"claim":"md13116-f4520f55","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"No legal bar to selling","plain_english":"Only an instrument free to be sold or hedged may go into the trading book.","rbi_paragraph":"Para 39(1)","rbi_char_offset":32641,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p57","layer":"bankpulse"},{"n":18,"claim":"md13116-b82c7424","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"No approval means trading","plain_english":"Where approval is not given, the instrument stays in the trading book.","rbi_paragraph":"Para 39(3)","rbi_char_offset":37290,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p58","layer":"bankpulse"},{"n":19,"claim":"md13116-a1abcd23","page_group":"Chapter IV. Classification of Investments","stored_section":"WHAT CHANGES","heading":"RBI can push it back","plain_english":"RBI may order an instrument moved out of the trading book if the case is weak.","rbi_paragraph":"Para 39(3)","rbi_char_offset":37900,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p59","layer":"bankpulse"},{"n":1,"claim":"md13116-6e291f97","page_group":"Chapter X. Operational Guidelines","stored_section":"KEY DATES","heading":"Fifteen minutes to report","plain_english":"An over the counter corporate bond trade must be reported within fifteen minutes.","rbi_paragraph":"Para 88(10)","rbi_char_offset":93728,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p60","layer":"bankpulse"},{"n":2,"claim":"md13116-7a3914d7","page_group":"Chapter X. Operational Guidelines","stored_section":"KEY DATES","heading":"Market exposure every meeting","plain_english":"The Audit Committee must review the whole capital market exposure at every meeting.","rbi_paragraph":"Para 91(6)","rbi_char_offset":105711,"weight":"DO IT","role":"Audit","team":null,"products_covered":["advance-against-securities"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p61","layer":"bankpulse"},{"n":3,"claim":"md13116-76ed7fed","page_group":"Chapter X. Operational Guidelines","stored_section":"WHO SHOULD ACT","heading":"Board hears the market exposure","plain_english":"The Audit Committee must keep the Board informed of the whole capital market exposure.","rbi_paragraph":"Para 91(7)","rbi_char_offset":106060,"weight":"DO IT","role":"Board","team":null,"products_covered":["advance-against-securities"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p62","layer":"bankpulse"},{"n":1,"claim":"md13116-4320c93a","page_group":"Chapter XI. Income Recognition, Asset Classification and Provisioning","stored_section":"WHAT CHANGES","heading":"90-day non-performing test","plain_english":"A bond or debenture becomes non-performing if interest stays unpaid for over 90 days.","rbi_paragraph":"Para 97(1)","rbi_char_offset":108868,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Interest on a debenture falls due on 1 June and is not paid. The holding stays healthy for 90 days. On the 91st day it becomes non-performing.","anchor":"https://bankpulse.ai/rule/md13116#p63","layer":"bankpulse"},{"n":2,"claim":"md13116-8550cadf","page_group":"Chapter XI. Income Recognition, Asset Classification and Provisioning","stored_section":"WHAT CHANGES","heading":"No income on NPIs","plain_english":"Banks cannot book any income on a non-performing investment.","rbi_paragraph":"Para 99","rbi_char_offset":113175,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p64","layer":"bankpulse"},{"n":3,"claim":"md13116-711007f2","page_group":"Chapter XI. Income Recognition, Asset Classification and Provisioning","stored_section":"WHAT CHANGES","heading":"Government securities protected","plain_english":"Banks cannot mark Central or State Government securities as non-performing investments.","rbi_paragraph":"Para 102(1)","rbi_char_offset":114766,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p65","layer":"bankpulse"},{"n":4,"claim":"md13116-7d6db1d3","page_group":"Chapter XI. Income Recognition, Asset Classification and Provisioning","stored_section":"WHAT CHANGES","heading":"Only if serviced on time","plain_english":"That accrual holds only where the rate is fixed and interest is not in arrears.","rbi_paragraph":"Para 93(1)","rbi_char_offset":107464,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p66","layer":"bankpulse"},{"n":5,"claim":"md13116-98595d24","page_group":"Chapter XI. Income Recognition, Asset Classification and Provisioning","stored_section":"WHAT CHANGES","heading":"Broken-period interest","plain_english":"Interest paid to a seller for part of a period is booked as an expense, not added to cost.","rbi_paragraph":"Para 96","rbi_char_offset":108041,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p67","layer":"bankpulse"},{"n":1,"claim":"md13116-f880a054","page_group":"Chapter XIII. Repeal and Other Provisions","stored_section":"KEY DATES","heading":"Later update","plain_english":"RBI updated these Directions again on May 18, 2026.","rbi_paragraph":"Para 113","rbi_char_offset":121033,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p68","layer":"bankpulse"},{"n":2,"claim":"md13116-991cb172","page_group":"Chapter XIII. Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"Older rules cancelled","plain_english":"This cancels the older RBI rules on how banks classify and value their investment portfolio.","rbi_paragraph":"Para 110","rbi_char_offset":118861,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p69","layer":"bankpulse"},{"n":3,"claim":"md13116-30fee77a","page_group":"Chapter XIII. Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"Old actions preserved","plain_english":"Actions already taken under the old rules still follow those old rules.","rbi_paragraph":"Para 111","rbi_char_offset":119334,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13116#p70","layer":"bankpulse"}],"actions":[],"amendments":[{"id":"nt13451","title":"Reserve Bank of India (Small Finance Banks - Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026","date":"May 18, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13451&Mode=0","order":1,"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."}