The Reserve Bank of India (RBI) issued the 2025 Directions on Commercial Banks – Credit Facilities to consolidate regulatory guidance on credit products and their delivery. These Directions aim to ensure orderly growth of the credit system, financial stability, and protection of depositors’ and borrowers’ interests while promoting innovation in credit delivery mechanisms. Applicable to all commercial banks except small finance, payment, and local area banks, the Directions are issued under the Banking Regulation Act, 1949, and come into immediate effect unless stated otherwise. They provide a comprehensive framework guiding regulated entities on prudential norms, product design, and operational standards for credit facilities. By consolidating prior instructions, the RBI seeks to streamline credit operations, ensure compliance with statutory safeguards, and maintain uniformity in credit practices across the banking sector. The Directions serve as a reference for risk management, governance, and regulatory adherence in credit provision.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/154
DOR.CRE.REC.73/07-01-001/2025-26
November 28, 2025
Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025
Introduction
Reserve Bank of India (Reserve Bank) is statutorily mandated to operate the credit system of the country to its advantage. In pursuit of this mandate, the Reserve Bank encourages innovation in the financial systems, credit products and delivery mechanisms while ensuring orderly growth, financial stability and the protection of depositors’ and borrowers’ interest. With the progressive deregulation of bank credit, prudential norms primarily serve as regulatory safeguards. These norms, issued from time to time, provide guidance to regulated entities (REs) on the design and delivery of credit-related products and services. These Directions consolidate the instructions issued to commercial banks on credit facilities.
Accordingly, in exercise of powers conferred by Sections 21, and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues these Directions hereinafter specified.
Chapter I – Preliminary
A. Short Title and Commencement
1. These Directions shall be called the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
2. These Directions shall come into effect immediately upon its issuance, unless indicated otherwise.
B. Applicability
3. These Directions shall be applicable to Commercial Banks (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’).
For the purpose of these Directions, ‘Commercial Banks’ means banking companies (other than Small Finance Banks, Payment Banks, and Local Area Banks), corresponding new banks, and the State Bank of India, as defined respectively under clauses (c), (da), and (nc) of Section 5 of the Banking Regulation Act, 1949.
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/154MD.pdf
