Regulatory Alerts2026-06-23
Added · Updated
Reserve Bank of India (Commercial Banks – Credit Facilities) Fourth Amendment Directions, 2026
The Amendment Directions insert a new Chapter IIA into the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025, establishing rules for credit facilities linked to specific payment instruments. The new provisions mandate that the prudential treatment of underlying credit facilities, including pre-sanctioned credit lines for UPI transactions, is determined solely by the nature of the facility and applicable prudential norms, regardless of the delivery mode or technology. Banks are required to include terms and conditions for credit facilities linked to specific payment modes in their credit policies and ensure compliance with all other applicable regulatory requirements. The directions clarify that only credit facilities permitted under extant regulations can be offered through such arrangements and remain subject to other laws governing payment mechanisms.