The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Regional Rural Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025.
The following has been stated: -
•The RBI Directions, 2025 for Regional Rural Banks (RRBs) provide a framework for classification, valuation, and operation of investment portfolios.
•RRBs must classify investments into HTM, AFS, and HFT categories, with specific limits and procedures for shifting between categories.
•Investments in government securities, non-SLR securities, mutual funds, commercial papers, and corporate bonds are governed by detailed valuation, prudential limits, and risk management norms.
•The Board of Directors is responsible for approving investment policies, monitoring risks, and reviewing portfolios periodically. Additionally, robust internal controls, audit, and reporting systems are mandated to ensure transparency, compliance, and proper provisioning for non-performing investments.
•These Directions shall come into effect from November 28, 2025.
[Notification No.:RBI/DOR/2025-26/260 DOR.MRG.REC.No.179/ 00-00-001/2025-26]
