RBI issued the amendment to Directions on

Feb 10, 2026 | by TeamLease RegTech Legal Research Team

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Industry Specific Compliance The Reserve Bank of India (RBI) on February 09, 2026, issued the amendment to Directions on Lending to Micro, Small & Medium Enterprises (MSME) Sector.

These amendments have been carried out:

• To enhance the extant Collateral-Free Loan Limit for Micro and Small Enterprises (MSEs) to ₹20 lakh, and align with certain regulatory changes that have been notified separately.

• The objective is to strengthen last-mile credit delivery for Micro and Small Enterprises with limited assets to provide as collateral.

• The amended Directions shall come into effect from April 01, 2026.

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