The Reserve Bank of India has issued the Small Finance Banks – Responsible Business Conduct Directions, 2025 to consolidate and strengthen regulatory requirements on customer service and fair business practices. Recognizing the importance of ethical conduct and high-quality customer service in the financial sector, these directions integrate all prior RBI instructions relating to customer protection, grievance redressal, transparency, and responsible banking into a single comprehensive framework. Applicable to all Small Finance Banks, the directions emphasize that banks must act in the public interest while ensuring fair treatment of customers. Issued under the powers of the Banking Regulation Act, 1949, these directions come into effect immediately upon issuance. By codifying responsible business conduct obligations, the RBI aims to promote trust, integrity, and accountability within Small Finance Banks, ensuring that operational and customer service practices align with regulatory expectations and the overarching goal of enhancing the quality of financial services across the sector.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/201
DOR.MCS.REC.No.120/01-01-033/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Small Finance Banks – Responsible Business Conduct) Directions, 2025
Introduction
Customer service holds great significance in the financial services sector. The Reserve Bank of India has, over the years, issued various instructions with a focus on enhancing the level of customer service and ensuring fair conduct towards customers by banks. These directions are issued with an aim to consolidate the various regulatory instructions on customer service and conduct aspects issued by the Reserve Bank of India to Small Finance Banks at one place.
Accordingly, in exercise of the powers conferred by Sections 21, 35A, 45ZC(3) and 45ZE(4) of Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (hereinafter called the ‘Reserve Bank’) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.
Chapter I – Preliminary
A. Short title and commencement
1. These Directions shall be called the Reserve Bank of India (Small Finance Banks – Responsible Business Conduct) Directions, 2025.
2. These Directions shall come into effect immediately upon issuance, unless indicated otherwise.
B. Applicability
3. These Directions shall be applicable to Small Finance Banks (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’).
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/201MD.pdf
