Regulatory Alerts2026-06-15
Added · Updated
Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
These directions amend the Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Directions, 2025 by substituting definitions for Agency Business and Referral Services in paragraph 4, and inserting new definitions for Regulated financial products and services, Third-party Product and Service, and Third-party Product and Service Provider. Paragraph 18 is substituted to permit Regional Rural Banks to market Mutual Fund units as agents subject to Board approval, SEBI compliance, fee-based arrangements without risk participation, and specific disclosure and grievance redressal conditions. Paragraph 20 is substituted to allow corporate agency business for all insurance products including health and animal insurance, contingent upon compliance with IRDAI regulations and similar conduct and disclosure requirements. Paragraph 23 is modified to require compliance with Responsible Business Conduct directions and relevant IRDAI regulations for insurance referrals, while sub-paras (2) and (6) are omitted, and paragraph 25 regarding disclosure of commission and fees is entirely removed.