Regulatory Alerts2026-06-24
Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Third Amendment Directions, 2026
The Reserve Bank of India issued these directions to amend the 2025 Responsible Business Conduct framework for Regional Rural Banks, introducing precise definitions for electronic banking transactions and negligence. The regulations mandate strict customer protection measures, including mandatory transaction alerts, 24x7 reporting channels, and a liability framework that assigns zero liability to customers for RRB negligence or third-party breaches reported within five days. Additionally, a compensation mechanism is established for small-value fraudulent losses up to ₹50,000, with costs shared between the Reserve Bank, the customer's bank, and the beneficiary bank.
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