Regulatory Alerts2026-06-24
Added · Updated
Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026
The Reserve Bank of India (RBI) issued the Third Amendment Directions, 2026, to revise instructions for Rural Co-operative Banks (RCBs) on customer liability in unauthorised electronic banking transactions (EBTs). RCBs must now establish comprehensive customer protection policies, implement robust fraud detection and reporting systems, and clearly define liabilities for various fraudulent EBT scenarios. It also introduces a compensation mechanism for individual victims of small-value fraudulent EBTs (up to "50,000 gross loss) in cases of customer negligence, funded by the RBI, customer's bank, and beneficiary bank.