The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Directions, 2025.
The following has been stated namely: -
• It has laid down a comprehensive framework obliging all-India financial institutions (AIFIs) to adhere to responsible business conduct, embedding ethical governance, human-rights protection, environmental considerations, transparency in stakeholder engagement, and sustainable development within their operational and strategic model.
• The guidelines emphasise that AIFIs shall integrate these responsibilities into their board-level oversight, risk management practices, and internal policies so that business goals align with broader societal and ecological objectives, thereby improving accountability beyond purely financial metrics.
• These financial institutions are required to report on their conduct, governance structures and processes, demonstrate how they identify, assess and mitigate adverse impacts, and ensure remediation where harm has occurred, creating a stronger linkage between business success and stewardship of public good.
• The framework also calls for enhanced disclosure of value-chain effects, supply-chain practices, and community outcomes, urging AIFIs to adopt global best practices in environmental, social, and governance (ESG) domains to safeguard long-term institutional resilience and trust.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/336 DOR.MCS.REC.No.255/01-01-040/2025-26]
