Regulatory Alerts2026-06-15
Added · Updated
Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Third Amendment Directions, 2026
These Directions amend the Master Direction on Commercial Banks' Undertaking of Financial Services by substituting definitions for Agency Business, Referral Services, and Regulated Financial Products, and inserting definitions for Third-party Products and Service Providers. The amendments require banks to deal only in regulated financial products under agency arrangements, mandate fee-based models without risk participation, and enforce strict compliance with Responsible Business Conduct directions. Referral services are restricted to a purely referral nature with explicit disclaimers, prohibiting the bank's brand from appearing in product documents or the integration of TPPS processes within bank platforms. These changes come into effect on January 01, 2027.