The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025.
The following has been stated: -
•The RBI (Local Area Banks - Responsible Business Conduct) Directions, 2025 consolidate customer service and fair conduct guidelines for Local Area Banks (LABs).
•It mandates Board-approved policies for sound business conduct and enhanced customer service, including aspects like safe deposit lockers and doorstep banking for vulnerable customers.
•The directions define an 'inoperative account' as one with no 'customer-induced transactions' for over two years, requiring annual review and customer notification to prevent deposits from becoming unclaimed.
•LABs must also offer Basic Savings Bank Deposit Accounts (BSBDA) with minimum free facilities and comply with the Supreme Court's order on services for differently abled persons.
These directions shall become effective on November 28, 2025.
[Notification No.:RBI/DOR/2025-26/244 DOR.MCS.REC.No.163/01-01-035/2025-26]
