Regulatory Alerts2026-06-23
Added · Updated
Reserve Bank of India (Small Finance Banks – Credit Facilities) Third Amendment Directions, 2026
The Amendment Directions insert a new Chapter IIA into the Reserve Bank of India (Small Finance 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. Banks must include terms and conditions for such credit facilities in their credit policies and ensure compliance with all other regulatory requirements. These instructions apply to credit facilities permitted under extant regulations and take immediate effect.