Following its October 1, 2025, policy statement, the Reserve Bank of India (RBI) released several draft Directions and a circular for public feedback. These draft directions primarily focus on Transaction Accounts for a range of regulated entities, including Commercial Banks, Small Finance Banks, Regional Rural Banks, Local Area Banks, various Co-operative Banks, and Payments Banks, indicating an intent to ease or modify existing stipulations to provide greater operational flexibility and enforce credit discipline. A specific draft direction was also issued regarding Basic Savings Bank Deposit (BSBD) Accounts, signaling a review of existing instructions to enhance financial inclusion and align with customer needs in the digital banking environment. Additionally, the RBI issued a repeal circular to withdraw the Guidelines on Enhancing Credit Supply for Large Borrowers through Market Mechanism, a framework originally introduced to manage credit concentration risk. The RBI has invited comments from banks, market participants, and other interested parties on all these draft documents, with a deadline of October 24, 2025.
Reserve Bank of India
RBI Issues draft Directions/ Circulars
In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated October 1, 2025, the Reserve Bank of India (RBI) has today issued the following draft Directions/ Circulars for public comments:
i. Reserve Bank of India (Commercial Banks – Transaction Accounts) Directions, 2025
ii. Reserve Bank of India (Small Finance Banks – Transaction Accounts) Directions, 2025
iii. Reserve Bank of India (Regional Rural Banks – Transaction Accounts) Directions, 2025
iv. Reserve Bank of India (Local Area Banks – Transaction Accounts) Directions, 2025
v. Reserve Bank of India (Urban Co-operative Banks – Transaction Accounts) Directions, 2025
vii Reserve Bank of India (Rural Co-operative Banks – Transaction Accounts) Directions, 2025
vii. Reserve Bank of India (Payments Banks – Transaction Accounts) Directions, 2025
2. Guidelines on Enhancing Credit Supply for Large Borrowers through Market (Repeal Circular), 2025
3. Reserve Bank of India (Basic Savings Bank Deposit Account) Directions, 2025
The comments on the draft Directions/ circulars are invited from the banks, market participants, and other interested parties till October 24, 2025. The comments/ feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website. Comments may alternatively be forwarded to The Chief General Manager-in-Charge, Department of Regulation, Central Office Reserve Bank of India, 12th/ 13th Floor Shahid Bhagat Singh Marg, Fort Mumbai – 400 001 or by email.
(Puneet Pancholy)
Chief General Manager
Press Release: 2025-2026/1228
