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.
RBI’s 2025 Directions establish a clear framework for voluntary amalgamation of UCBs, focusing on depositor protection, capital adequacy, and regulatory approval.
RBI introduces a comprehensive framework mandating uniform, transparent, and non-negotiable interest rates for Payments Banks. The Directions clarify rules for savings deposits, prohibit inducements, and repeal earlier guidelines.
RBI introduces flexible on-tap licensing for Small Finance Banks to boost financial inclusion, regulate promoters, and ensure robust banking operations.
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.
The RBI introduces updated prudential norms requiring Payments Banks to maintain adequate regulatory capital. The Directions aim to strengthen financial stability and ensure disciplined risk management.
RBI’s 2025 Directions set strict rules for managing financial and IT outsourcing risks, including Board oversight, data security, and vendor accountability. Banks must comply to safeguard operations and customer data.
The regulator has issued binding directions standardising how Local Area Banks present and disclose financial statements, effective immediately to enhance transparency.
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.
