The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 to align permissible financial services activities with the revised Credit Facilities framework.
Under the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025, paragraph 18(4) of Chapter III specified the financial services activities that banks could undertake departmentally or through subsidiaries/associates. The references to acquisition-related financing and lending against securities were framed under earlier terminology and structures, which did not reflect the revised definitions and prudential architecture introduced subsequently in the Credit Facilities framework.
Paragraph 18(4) has been modified to substitute:
Sub-paragraph (ii)(a)iii with “Acquisition finance and bridge finance for financing of promoter’s stake in new companies”; and
Sub-paragraph (ii)(b) with “Lending to individuals against eligible securities.”
The amendment becomes effective from the date a bank adopts the Credit Facilities Amendment Directions, 2026 or April 1, 2026, whichever is earlier.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13299&Mode=0
