Highlights of RBI’s Statement on Development and Regulatory Policies
RBI has set out key development and regulatory policies to enhance regulation, inclusion and market efficiency.
RBI has set out key development and regulatory policies to enhance regulation, inclusion and market efficiency.
Reserve Bank of India introduced the Foreign Exchange Management (Guarantees) Regulations, 2026, replacing the 2000 framework. These regulations govern cross-border guarantees by Indian residents under FEMA, 1999. They outline prohibitions, exemptions, conditions for acting as surety or principal debtor, and reporting requirements. The aim is to ensure compliance, transparency, and proper oversight of guarantees involving residents and non-residents.
Reserve Bank of India has announced seven amendment directions on Responsible Business Conduct, effective April 1, 2026. These changes aim to modernize Basic Savings Bank Deposit (BSBD) accounts, introducing free essential banking facilities, digital payment norms, and customer-friendly options to promote financial inclusion in a digital era.
RBI has issued Amendments to LEF and ITE Frameworks through the Commercial Banks — Concentration Risk Management Amendment Directions, 2025, clarifying prudential treatment and strengthening risk practices.
RBI issues amendments to Gold Metal Loan Scheme to streamline regulations, expand scope, and boost ease of doing business.
RBI announced the slashing of Repo Rate from 5.50% to 5.25%.
RBI issues directions and notifications on credit facilities, prudential norms, governance, asset classification, and compliance for banks and financial institutions.
by Sameer Sah*, Nitya Saxena** and Manya Chugh***
RBI allows exporters to open foreign currency accounts in IFSCs under FEMA 2025 amendment, effective immediately.
“Personal hearing cannot be demanded as a matter of right, unless specifically mandated by statute or rules. The principles of natural justice cannot be applied in a straitjacket formula; their application depends on the facts and circumstances of each case”
RBI’s auction of State Government Securities presented a strong investment opportunity, with eleven states raising ₹25,000 crore to support long-term development, infrastructure, and fiscal needs.
RBI has imposed a ₹21 lakh penalty on PhonePe for failing to comply with PPI guidelines, citing escrow account shortfalls and reporting lapses during its October 2023—December 2024 inspection.
MCA expand fast-track merger eligibility and introduce new compliance forms and procedures for smoother regulatory approvals under Companies Act 2013.
RBI Co-Lending Arrangements Directions 2025 establish a unified framework for joint lending by banks and NBFCs to improve transparency risk sharing and borrower protection.
Directions to safeguard the capital of regulated entities by restricting investments in Alternative Investment Funds that have exposure to borrowers in default.
Project Finance re-defined under RBI’s new Directions.
Repo Rate slashed to 5.50 % as RBI reinforces Economic Growth Policies.
The central dispute involved RBI’s cancellation of Shabros Finvest Pvt. Ltd.’s NBFC registration for allegedly failing to meet the prescribed Net Owned Fund (NOF) requirement.
RBI notifies digital lending rules to establish transparency, protect borrowers, and regulate multi-lender partnerships.