The Reserve Bank of India (RBI) on February 06, 2026, issued the Statement on Developmental and Regulatory Policies.
The following has been stated:
• Regulatory reforms: RBI announced draft guidelines to strengthen conduct standards across the financial sector. This includes comprehensive instructions for regulated entities on advertising, marketing, and sales to curb mis-selling, harmonisation of conduct rules related to loan recovery and recovery agents, and a review of the framework for limiting customer liability in unauthorized digital transactions, with drafts to be issued for public consultation.
• Bank lending and financial intermediaries: RBI proposed permitting commercial banks to lend to Real Estate Investment Trusts (REITs), subject to prudential safeguards and harmonising these norms with those for InvITs. It also initiated a review of lending norms for Urban Co-operative Banks (UCBs), with a view to adopting a tiered, simplified approach. For NBFCs, RBI is considering exempting certain small NBFCs (Type-I) that do not take public funds and have no customer interface from registration, and simplifying branch authorisation requirements for NBFCs engaged in gold lending. Draft directions on these changes will be issued for comments.
• Payment system and customer protection: RBI plans to issue a discussion paper on safeguards in digital payments to curb fraud, including exploring lagged credits and additional authentication for specific user segments, such as senior citizens, to strengthen customer protection.
• Financial inclusion: A review of the Lead Bank Scheme and the Kisan Credit Card (KCC) framework aims to streamline operational guidelines, expand coverage, and improve effectiveness. RBI also intends to revise guidelines for the use of Business Correspondents (BCs) to enhance last-mile financial access. Additionally, the collateral-free loan limit for Micro and Small Enterprises (MSEs) will be raised from ₹10 lakh to ₹20 lakh, effective from 1 April 2026.
• Financial markets: RBI supports the development of the corporate bond market, with regulatory frameworks for derivatives on corporate bonds and total return swaps to be issued for public feedback. The foreign exchange regulatory framework for authorised dealers is also being refined to provide greater flexibility, and changes to the Voluntary Retention Route (VRR) for Foreign Portfolio Investors will integrate it with the general investment route and improve operational ease.
• Capacity building: RBI will launch Mission SAKSHAM, a sector-wide capacity-building and certification initiative for Urban Co-operative Banks to strengthen skills, operational resilience, and service delivery across functions, with extensive training programs planned.
• Overall, the statement outlines RBI’s forward-looking regulatory and developmental agenda to strengthen consumer protection, enhance financial inclusion, support market development, deepen credit delivery, and modernise financial infrastructure.
[Press Release: 2025-2026/2055]
