Regulatory Alerts2026-06-15
Added · Updated
Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2026
The Reserve Bank of India amends the 2025 Master Direction for Small Finance Banks by substituting definitions for 'Agency Business' and 'Referral Services' and inserting definitions for 'Regulated financial products and services', 'Third-party Product and Service', and 'Third-party Product and Service Provider'. The amendment omits several existing paragraphs and replaces Paragraph 37 to mandate that agency business involves fee-based sales of regulated products without risk participation, with explicit upfront disclosure. It also replaces Paragraph 41 to restrict referral services to regulated products, requiring clear disclaimers, transparency via published lists, and ensuring the bank's brand does not feature in product documents. These Directions come into effect on January 01, 2027.