{"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":"md13121","title":"Reserve Bank of India (Small Finance Banks – Credit Risk Management) Directions, 2025","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13121","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":"md13121","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/md13121.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13121","document_date":"November 28, 2025","read_by_bankpulse":"2026-08-21 16:16:21 UTC","text_sha256":"b827589d9c2cc108d44b6329bd07769378ff10b292200cc79244e587eaf99a1a","word_count":null,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":67,"points_naming_an_rbi_paragraph":67,"points_stored":67,"actions":0,"amendments":3},"points":[{"n":1,"claim":"md13121-774d2154","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Credit risk rules for SFBs","plain_english":"This document sets the credit risk management rules for small finance banks.","rbi_paragraph":"Para 1","rbi_char_offset":4088,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p1","layer":"bankpulse"},{"n":2,"claim":"md13121-13e9a109","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":4285,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p2","layer":"bankpulse"},{"n":1,"claim":"md13121-e441184f","page_group":"Chapter II. Board Approved Policies","stored_section":"WHO SHOULD ACT","heading":"Board policy on credit risk","plain_english":"The Board must approve a full policy on managing credit risk.","rbi_paragraph":"Para 4(2)","rbi_char_offset":15892,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p3","layer":"bankpulse"},{"n":1,"claim":"md13121-5a46782d","page_group":"Chapter III. Credit Risk Evaluation","stored_section":"WHO SHOULD ACT","heading":"Follow the guidance note","plain_english":"The lender must follow the guidance note on credit risk management strictly.","rbi_paragraph":"Para 6","rbi_char_offset":16455,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p4","layer":"bankpulse"},{"n":2,"claim":"md13121-27f94e13","page_group":"Chapter III. Credit Risk Evaluation","stored_section":"WHO SHOULD ACT","heading":"Test the hard cases","plain_english":"Sensitivity tests must cover project delays and cost overruns, mainly on infrastructure.","rbi_paragraph":"Para 8","rbi_char_offset":16824,"weight":"DO IT","role":"All staff","team":null,"products_covered":["infrastructure-finance"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p5","layer":"bankpulse"},{"n":3,"claim":"md13121-85a32fb5","page_group":"Chapter III. Credit Risk Evaluation","stored_section":"WHO SHOULD ACT","heading":"Check the promoter money","plain_english":"The source and quality of the promoter's own capital must be checked.","rbi_paragraph":"Para 9","rbi_char_offset":17164,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p6","layer":"bankpulse"},{"n":4,"claim":"md13121-3f8462f9","page_group":"Chapter III. 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Credit Risk Evaluation","stored_section":"WHO SHOULD ACT","heading":"Committee watches the limits","plain_english":"The risk committee must keep those limits under watch at all times.","rbi_paragraph":"Para 10","rbi_char_offset":18077,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p9","layer":"bankpulse"},{"n":7,"claim":"md13121-9550176e","page_group":"Chapter III. Credit Risk Evaluation","stored_section":"WHAT CHANGES","heading":"Allow for calamities","plain_english":"Credit assessment must allow for the effect of a calamity on the borrower.","rbi_paragraph":"Para 12","rbi_char_offset":18721,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p10","layer":"bankpulse"},{"n":1,"claim":"md13121-f3227e6c","page_group":"Chapter IV. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"No loan on own shares","plain_english":"A lender cannot lend against the security of its own shares.","rbi_paragraph":"Para 13(1)","rbi_char_offset":18988,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p11","layer":"bankpulse"},{"n":2,"claim":"md13121-7a1e59d4","page_group":"Chapter IV. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"Staff rate is the floor","plain_english":"Such a loan cannot carry a rate lower than the rate charged to employees.","rbi_paragraph":"Para 14(1)","rbi_char_offset":21429,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p12","layer":"bankpulse"},{"n":3,"claim":"md13121-776c8e0d","page_group":"Chapter IV. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"Director facility fully secured","plain_english":"A non-fund facility for a director must be fully backed by cash of equal value.","rbi_paragraph":"Para 14(1)","rbi_char_offset":21606,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p13","layer":"bankpulse"},{"n":4,"claim":"md13121-4eb73b57","page_group":"Chapter IV. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"Wrong write-off is void","plain_english":"A remission made against the law has no effect at all.","rbi_paragraph":"Para 21(1)","rbi_char_offset":22799,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p14","layer":"bankpulse"},{"n":5,"claim":"md13121-ca4c4adf","page_group":"Chapter IV. Statutory Restrictions","stored_section":"WHAT CHANGES","heading":"No funding share buy-back","plain_english":"A lender cannot fund a company buying back its own shares.","rbi_paragraph":"Para 23(3)","rbi_char_offset":23462,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p15","layer":"bankpulse"},{"n":1,"claim":"md13121-21f72ce7","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHO SHOULD ACT","heading":"Board owns related party rules","plain_english":"The Board carries overall responsibility for the related party lending policy.","rbi_paragraph":"Para 23(3)","rbi_char_offset":24037,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p16","layer":"bankpulse"},{"n":2,"claim":"md13121-8f12fb4b","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHO SHOULD ACT","heading":"Extra safeguards required","plain_english":"The policy must set extra safeguards against the risks of related party lending.","rbi_paragraph":"Para 23(3)","rbi_char_offset":24444,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p17","layer":"bankpulse"},{"n":3,"claim":"md13121-6b7d3bb7","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHO SHOULD ACT","heading":"Staff and their relatives","plain_english":"The policy must cover lending to specified employees and their relatives.","rbi_paragraph":"Para 23(3)","rbi_char_offset":24591,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p18","layer":"bankpulse"},{"n":4,"claim":"md13121-be10907e","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Cap on related party loans","plain_english":"The policy must set a total limit for loans to related parties.","rbi_paragraph":"Para 23(3)","rbi_char_offset":25004,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p19","layer":"bankpulse"},{"n":5,"claim":"md13121-cc96f411","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Sub-limits within the cap","plain_english":"Inside that total there must be sub-limits for one party and for a group.","rbi_paragraph":"Para 23(3)","rbi_char_offset":25099,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p20","layer":"bankpulse"},{"n":6,"claim":"md13121-f6e8b572","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Inside RBI limits","plain_english":"Those limits must sit inside the exposure limits RBI already sets.","rbi_paragraph":"Para 23(3)","rbi_char_offset":25199,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p21","layer":"bankpulse"},{"n":7,"claim":"md13121-bd4a19ea","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Judged transaction by transaction","plain_english":"The materiality threshold applies to each loan on its own.","rbi_paragraph":"Para 23(3)","rbi_char_offset":27701,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p22","layer":"bankpulse"},{"n":8,"claim":"md13121-a63fd00d","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"Board sanctions the big ones","plain_english":"A loan above that threshold must be sanctioned by the Board or its committee.","rbi_paragraph":"Para 23(3)","rbi_char_offset":27942,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p23","layer":"bankpulse"},{"n":9,"claim":"md13121-5e2a6fe0","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHO SHOULD ACT","heading":"Step out of the room","plain_english":"Anyone connected to the borrower must take no part in the decision.","rbi_paragraph":"Para 23(3)","rbi_char_offset":28269,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p24","layer":"bankpulse"},{"n":10,"claim":"md13121-bac85ae1","page_group":"Chapter V. Regulatory Restrictions","stored_section":"KEY DATES","heading":"Yearly report to the Board","plain_english":"Loans to specified employees and their relatives are reported to the Board each year.","rbi_paragraph":"Para 23(3)","rbi_char_offset":29052,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p25","layer":"bankpulse"},{"n":11,"claim":"md13121-c3aaf93c","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHO SHOULD ACT","heading":"Deviations to audit","plain_english":"Any departure from the policy must be reported to the audit committee with reasons.","rbi_paragraph":"Para 23(3)","rbi_char_offset":29419,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p26","layer":"bankpulse"},{"n":12,"claim":"md13121-8a5b57ae","page_group":"Chapter V. Regulatory Restrictions","stored_section":"IMPACT","heading":"Breach draws action","plain_english":"Breaking or dodging these rules brings supervisory and enforcement action.","rbi_paragraph":"Para 23(3)","rbi_char_offset":30489,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p27","layer":"bankpulse"},{"n":13,"claim":"md13121-b1fa7041","page_group":"Chapter V. Regulatory Restrictions","stored_section":"WHAT CHANGES","heading":"No ozone harming units","plain_english":"No finance may be given for a new unit making or using ozone depleting substances.","rbi_paragraph":"Para 43","rbi_char_offset":30958,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p28","layer":"bankpulse"},{"n":1,"claim":"md13121-7df1f197","page_group":"Chapter VI. Country Risk Management","stored_section":"WHO SHOULD ACT","heading":"Country risk policy","plain_english":"The country risk policy must fix who is responsible at each level.","rbi_paragraph":"Para 44","rbi_char_offset":31713,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p29","layer":"bankpulse"},{"n":2,"claim":"md13121-41d1f79a","page_group":"Chapter VI. Country Risk Management","stored_section":"WHO SHOULD ACT","heading":"Board reviews the policy","plain_english":"The Board must review that policy from time to time in the light of experience.","rbi_paragraph":"Para 44","rbi_char_offset":31953,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p30","layer":"bankpulse"},{"n":3,"claim":"md13121-4ef650eb","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"Know the customer abroad","plain_english":"Customer identification must not be relaxed for international business.","rbi_paragraph":"Para 46","rbi_char_offset":32696,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p31","layer":"bankpulse"},{"n":4,"claim":"md13121-5eced983","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"Country risk in the file","plain_english":"Country risk must be named openly when the counterparty is assessed.","rbi_paragraph":"Para 46","rbi_char_offset":32908,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p32","layer":"bankpulse"},{"n":5,"claim":"md13121-448e0ee6","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"Count both kinds","plain_english":"Both funded and non-funded exposures count when country risk is measured.","rbi_paragraph":"Para 47","rbi_char_offset":33007,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p33","layer":"bankpulse"},{"n":6,"claim":"md13121-55722c18","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"Indirect risk counts too","plain_english":"Indirect country risk must be taken into account.","rbi_paragraph":"Para 48","rbi_char_offset":33843,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p34","layer":"bankpulse"},{"n":7,"claim":"md13121-724db860","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"No better than the country","plain_english":"An internal country rating cannot be better than the international agency rating.","rbi_paragraph":"Para 49","rbi_char_offset":34562,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p35","layer":"bankpulse"},{"n":8,"claim":"md13121-6a32ea34","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"Watch it live","plain_english":"Country exposures must be monitored on a real time basis.","rbi_paragraph":"Para 52","rbi_char_offset":35658,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p36","layer":"bankpulse"},{"n":9,"claim":"md13121-d3fc9977","page_group":"Chapter VI. Country Risk Management","stored_section":"WHAT CHANGES","heading":"Stress test the country","plain_english":"Country risk management must include stress testing.","rbi_paragraph":"Para 53","rbi_char_offset":35749,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p37","layer":"bankpulse"},{"n":10,"claim":"md13121-f0be420b","page_group":"Chapter VI. Country Risk Management","stored_section":"KEY DATES","heading":"Board looks every quarter","plain_english":"The Board must review country exposures every quarter.","rbi_paragraph":"Para 54","rbi_char_offset":35963,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p38","layer":"bankpulse"},{"n":1,"claim":"md13121-312afb34","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Unhedged currency watched","plain_english":"Unhedged foreign currency exposure of borrowers must be measured and provided for.","rbi_paragraph":"Para 56","rbi_char_offset":36889,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p39","layer":"bankpulse"},{"n":2,"claim":"md13121-a7bb1bbb","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"KEY DATES","heading":"Yearly currency check","plain_english":"Foreign currency exposure of every entity must be worked out at least once a year.","rbi_paragraph":"Para 57(1)","rbi_char_offset":37209,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p40","layer":"bankpulse"},{"n":3,"claim":"md13121-4f8aa325","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Five year horizon","plain_english":"Items maturing over the next five years count in that exposure.","rbi_paragraph":"Para 57(2)","rbi_char_offset":37605,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p41","layer":"bankpulse"},{"n":4,"claim":"md13121-0d767fb6","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"KEY DATES","heading":"Quarterly from the borrower","plain_english":"The borrower must supply unhedged exposure figures every quarter.","rbi_paragraph":"Para 57(2)","rbi_char_offset":38081,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p42","layer":"bankpulse"},{"n":5,"claim":"md13121-12bc4386","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"KEY DATES","heading":"Audited once a year","plain_english":"Those figures must be audited and certified by the statutory auditor each year.","rbi_paragraph":"Para 57(2)","rbi_char_offset":38260,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p43","layer":"bankpulse"},{"n":6,"claim":"md13121-d29de8d1","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Worst year in ten","plain_english":"Potential loss is worked out using the largest yearly swing in the rupee over ten years.","rbi_paragraph":"Para 58(1)","rbi_char_offset":38472,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p44","layer":"bankpulse"},{"n":7,"claim":"md13121-8d93342f","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"KEY DATES","heading":"Counted every quarter","plain_english":"The extra provision and capital must be worked out at least every quarter.","rbi_paragraph":"Para 58(4)","rbi_char_offset":41545,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p45","layer":"bankpulse"},{"n":8,"claim":"md13121-e4ae5aea","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Floor of twenty basis points","plain_english":"The extra provision can never fall below 20 basis points.","rbi_paragraph":"Para 58(5)","rbi_char_offset":41966,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p46","layer":"bankpulse"},{"n":9,"claim":"md13121-48132ed4","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Counts in Tier 2","plain_english":"That extra provision counts as a general provision and enters Tier 2 capital.","rbi_paragraph":"Para 58(8)","rbi_char_offset":43022,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p47","layer":"bankpulse"},{"n":10,"claim":"md13121-1ffbe715","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Into the rating system","plain_english":"Unhedged currency risk must enter the internal credit rating system.","rbi_paragraph":"Para 59","rbi_char_offset":43145,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p48","layer":"bankpulse"},{"n":11,"claim":"md13121-25b4d29a","page_group":"Chapter VII. Unhedged Foreign Currency Exposure (UFCE)","stored_section":"WHAT CHANGES","heading":"Internal currency limits","plain_english":"Internal limits must be set for unhedged foreign currency exposure.","rbi_paragraph":"Para 59","rbi_char_offset":43295,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p49","layer":"bankpulse"},{"n":1,"claim":"md13121-59c32eab","page_group":"Chapter IX. Valuation of Properties - Empanelment of Valuers","stored_section":"WHAT CHANGES","heading":"Valuer must be independent","plain_english":"A valuer must be professionally qualified and free of any interest in the property.","rbi_paragraph":"Para 70(2)","rbi_char_offset":48168,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p50","layer":"bankpulse"},{"n":2,"claim":"md13121-afca164d","page_group":"Chapter IX. Valuation of Properties - Empanelment of Valuers","stored_section":"WHAT CHANGES","heading":"Two reports above ₹50 crore","plain_english":"A property valued at ₹50 crore or more needs two independent valuation reports.","rbi_paragraph":"Para 70(3)","rbi_char_offset":48313,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A property valued at ₹65 crore needs two independent valuation reports. That is because it is ₹50 crore or above. A property valued at ₹30 crore is below ₹50 crore, so this rule does not apply.","anchor":"https://bankpulse.ai/rule/md13121#p51","layer":"bankpulse"},{"n":3,"claim":"md13121-4789f516","page_group":"Chapter IX. Valuation of Properties - Empanelment of Valuers","stored_section":"WHO SHOULD ACT","heading":"Keep a list of valuers","plain_english":"The lender must keep a register of approved valuers.","rbi_paragraph":"Para 72(1)","rbi_char_offset":50138,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p52","layer":"bankpulse"},{"n":4,"claim":"md13121-bc8066c0","page_group":"Chapter IX. Valuation of Properties - Empanelment of Valuers","stored_section":"WHAT CHANGES","heading":"Qualifications from the law","plain_english":"The qualifications set must follow those in the Wealth Tax Act.","rbi_paragraph":"Para 72(2)","rbi_char_offset":50535,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p53","layer":"bankpulse"},{"n":1,"claim":"md13121-c8594407","page_group":"Chapter X. Filing of Security Interest relating to Immovable (other than equitable mortgage), Movable, and Intangible Assets in CERSAI","stored_section":"WHAT CHANGES","heading":"Registry open to all","plain_english":"The central registry records must be open to search by any lender or person.","rbi_paragraph":"Para 75","rbi_char_offset":51702,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p54","layer":"bankpulse"},{"n":1,"claim":"md13121-c5a36388","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Free below ₹10 crore","plain_english":"Below ₹10 crore of total banking system exposure, current accounts carry no restriction.","rbi_paragraph":"Para 77","rbi_char_offset":54352,"weight":"DO IT","role":"All staff","team":null,"products_covered":["deposit-account"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p55","layer":"bankpulse"},{"n":2,"claim":"md13121-bf16c968","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"KEY DATES","heading":"Check every half year","plain_english":"Accounts must be checked at least once every six months.","rbi_paragraph":"Para 77(3)","rbi_char_offset":58967,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p56","layer":"bankpulse"},{"n":3,"claim":"md13121-a065dbc2","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"KEY DATES","heading":"Three months to fix","plain_english":"Conversion or closure must be finished within three months of finding the account ineligible.","rbi_paragraph":"Para 77(1)","rbi_char_offset":59766,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p57","layer":"bankpulse"},{"n":4,"claim":"md13121-f3394653","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Flag it in the system","plain_english":"Such accounts must be flagged in the core banking system.","rbi_paragraph":"Para 77(1)","rbi_char_offset":59888,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p58","layer":"bankpulse"},{"n":5,"claim":"md13121-292ba24c","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Watch borrower and account","plain_english":"Where a borrower has several accounts, both the borrower and each account must be watched.","rbi_paragraph":"Para 77(1)","rbi_char_offset":60083,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p59","layer":"bankpulse"},{"n":6,"claim":"md13121-f2c897b6","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"Only the stated business","plain_english":"An account may be used only for the business it was opened for.","rbi_paragraph":"Para 77(1)","rbi_char_offset":60287,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p60","layer":"bankpulse"},{"n":7,"claim":"md13121-1f3daa29","page_group":"Chapter XIA. Maintenance of Cash Credit Accounts, Current Accounts and Overdraft Accounts by Banks","stored_section":"WHAT CHANGES","heading":"No pass-through use","plain_english":"These accounts must never be used to pass money for third parties.","rbi_paragraph":"Para 77(1)","rbi_char_offset":60400,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p61","layer":"bankpulse"},{"n":1,"claim":"md13121-05769531","page_group":"Chapter XII. Loan System for Delivery of Bank Credit","stored_section":"WHAT CHANGES","heading":"Sixty per cent as loan","plain_english":"For such borrowers, 60 per cent of the working capital limit must be drawn as a loan.","rbi_paragraph":"Para 92(1)","rbi_char_offset":62474,"weight":"DO IT","role":"All staff","team":null,"products_covered":["working-capital"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p62","layer":"bankpulse"},{"n":2,"claim":"md13121-db2099fc","page_group":"Chapter XII. Loan System for Delivery of Bank Credit","stored_section":"WHAT CHANGES","heading":"Commercial paper counts","plain_english":"Commercial paper the lender buys counts inside that loan portion.","rbi_paragraph":"Para 92(1)","rbi_char_offset":63003,"weight":"DO IT","role":"All staff","team":null,"products_covered":["working-capital"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p63","layer":"bankpulse"},{"n":3,"claim":"md13121-015d2aaf","page_group":"Chapter XII. Loan System for Delivery of Bank Credit","stored_section":"WHAT CHANGES","heading":"Intra-day is outside","plain_english":"The minimum loan portion rule does not apply to intra-day credit.","rbi_paragraph":"Para 92(1)","rbi_char_offset":63208,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p64","layer":"bankpulse"},{"n":1,"claim":"md13121-1079c38d","page_group":"Chapter XIII. 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 94","rbi_char_offset":65210,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p65","layer":"bankpulse"},{"n":2,"claim":"md13121-76f8c80d","page_group":"Chapter XIII. 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 94","rbi_char_offset":65389,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13121#p66","layer":"bankpulse"},{"n":3,"claim":"md13121-ed77acc3","page_group":"Chapter XIII. Repeal and other provisions","stored_section":"IMPACT","heading":"Other laws still apply","plain_english":"These Directions add to other laws. They do not replace any of them.","rbi_paragraph":"Para 95","rbi_char_offset":66285,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A bank follows these Directions and thinks the matter is closed. It is not. Any other laws, rules, regulations or directions in force still apply on top. Where another one asks for more, the bank does the more.","anchor":"https://bankpulse.ai/rule/md13121#p67","layer":"bankpulse"}],"actions":[],"amendments":[{"id":"nt13218","title":"Reserve Bank of India (Small Finance Banks – Credit Risk Management) – Amendment Directions, 2025","date":"Dec 11, 2025","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13218&Mode=0","order":1,"layer":"rbi_source"},{"id":"nt13250","title":"Reserve Bank of India (Small Finance Banks – Credit Risk Management) – Amendment Directions, 2026","date":"Jan 05, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13250&Mode=0","order":2,"layer":"rbi_source"},{"id":"nt13419","title":"Reserve Bank of India (Small Finance Banks – Credit Risk Management) Second Amendment Directions, 2026","date":"Apr 29, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13419&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."}