The Directions mandate malus, clawback, deferral, and prohibitions on guaranteed bonuses to align pay with long-term risk outcomes. This ensures responsible remuneration practices that support prudent banking.
RBI mandates clear consent, choice of channels, accessibility, risk management, and protection against unauthorized transactions for digital banking users.
The RBI introduces the 2025 Directions for opening and managing local area bank branches, emphasizing rural financial inclusion and strict regulatory compliance.
The RBI mandates comprehensive risk management and governance for payments banks’ outsourcing of financial and IT services. Banks must ensure board oversight, security, and customer grievance mechanisms.
The RBI has issued new directions on loan pricing for Local Area Banks, introducing benchmark-linked interest rates and standardised spreads. These rules aim to enhance transparency and protect borrowers.
The Directions lay down minimum pricing norms for fixed-rate loans and detailed rules for floating and hybrid loans. The decision balances bank flexibility with safeguards against under-pricing and unfair charges.
The RBI introduces strict standards on risk retention, liquidity facilities, and accounting treatment for securitised assets. It restricts SFBs to acting only as originators and mandates stronger disclosure and governance norms. The move aims to curb implicit support and enhance prudential discipline.
RBI Directions promote diversified ownership and limit concentration of control. Detailed application, due diligence, and compliance reporting safeguard the banking sector from financial and governance risks.
Banks raising green deposits must comply with policies on project selection, fund allocation, and monitoring. Eligible projects include renewable energy, clean transport, energy efficiency, and biodiversity conservation.
Dividend payouts by banks are restricted by capital adequacy and asset quality metrics, ensuring prudent financial management. The Directions prevent declaration from unrealised gains or extraordinary profits.
