Summary: The Reserve Bank of India (RBI), through the Reserve Bank of India (Small Finance Banks – Miscellaneous) Amendment Directions, 2026, dated October 19, 2026, has deleted Section C on “Limits for Non-Option Derivative Contracts” from Chapter IV of the Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025. The deletion specifically concerns paragraph 37 of those Directions. Issued under reference RBI/2026-27/295 and DOR.MRG.REC.No.249/00-00-020/2026-27, the amendment comes into effect immediately upon issuance. The RBI states that it has made the change following a review and in exercise of its powers under section 35A of the Banking Regulation Act, 1949, together with all other enabling provisions and laws. It records its satisfaction that issuing the amendment is necessary and expedient in the public interest.
The operative change is the deletion of the identified section and paragraph; the notification does not reproduce the deleted provision, prescribe replacement limits, or set out a separate transitional arrangement. Its stated subject is non-option derivative contracts under the miscellaneous directions applicable to Small Finance Banks. The instrument specifies its formal title, immediate commencement and the precise provision being removed. It is signed by Sunil T S Nair, Chief General Manager. Accordingly, the amendment takes effect from its issuance on October 19, 2026.
Reserve Bank of India
RBI/2026-27/295
DOR.MRG.REC.No.249/00-00-020/2026-27 | Dated: October 19, 2026
Reserve Bank of India (Small Finance Banks – Miscellaneous) Amendment Directions, 2026
Please refer to Section C on ‘Limits for Non-Option Derivative Contracts’ of Chapter IV of the Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025.
2. On a review, and in exercise of the powers conferred by section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
3. (i) These instructions shall be called the Reserve Bank of India (Small Finance Banks – Miscellaneous) Amendment Directions, 2026.
(ii) The amended instructions shall come into effect immediately upon issuance.
4. Section C on ‘Limits for Non-Option Derivative Contracts’ of Chapter IV of the Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025 (paragraph 37 of the Directions) stands deleted.
(Sunil T S Nair)
Chief General Manager
