The Reserve Bank of India (Small Finance Banks – Undertaking of Financial Services) Second Amendment Directions, 2026 revise the regulatory framework governing agency business and referral services undertaken by Small Finance Banks (SFBs). Effective from January 1, 2027, the amendments clarify the distinction between agency and referral arrangements involving third-party financial products and services. SFBs are permitted to undertake agency business only on a fee basis without assuming any risk and must clearly disclose this to customers. Banks may facilitate grievance redressal but must ensure that third-party providers maintain robust customer service mechanisms. Under referral arrangements, banks can merely direct customers to regulated financial service providers without participating in sales, post-sale servicing, or grievance handling. The Directions strengthen transparency by requiring disclosures on digital platforms, mandating due diligence of third-party providers, and aligning conduct standards with the Responsible Business Conduct Directions, thereby enhancing customer protection and mitigating reputational risks.
Reserve Bank of India
RBI/2026-27/124
DOR.MCS.REC.No.103/01-01-039/2026-27 | Dated: June 15, 2026
Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026
Reserve Bank had earlier issued instructions on ‘Advertising, Marketing and Sales’ to Housing Finance Companies (HFCs) under Chapter-X on ‘Fair Practices Code’ in Reserve Bank of India (Housing Finance Companies) Directions, 2025. The extant instructions have since been reviewed and it has been decided to issue comprehensive instructions on advertising, marketing and sale of financial products / services to all Non-Banking Financial Companies (NBFCs), including HFCs but excluding Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs not having any customer interface, under the Reserve Bank of India (Non-Banking Financial Companies — Responsible Business Conduct) Directions, 2025.
2. In exercise of the powers conferred by Section 30A of the National Housing Bank Act,1987, the Reserve Bank, being satisfied that it is necessary and expedient in public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. Short Title and Commencement
1. These Directions shall be called the Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026.
2. These Directions shall come into effect on January 1, 2027.
4. These Amendment Directions shall modify the Reserve Bank of India (Housing Finance Companies) Directions, 2025 as under:
(1) In Chapter-X on ‘Fair Practices Code’, the sub-sections A.10 Advertising, Marketing and Sales (paragraphs 150 to 154) and A.11 Code of Conduct for DSAs/DMAs (paragraphs 155 to 157) shall be deleted and substituted with a new sub-section as under:
“A.11A Advertising, Marketing and Sale of Financial Products / Services by HFCs
157A. An HFC shall ensure compliance with the provisions of paragraphs 101A to 101ZA under Chapter MA of Reserve Bank of India (Non-Banking Financial Companies — Responsible Business Conduct) Directions, 2025.”
(Veena Srivastava)
Chief General Manager
