The Reserve Bank of India (RBI) on April 01, 2026, issued an update in the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025.
The following has been stated: -
•The Reserve Bank of India has issued Directions to strengthen customer service and ensure fair conduct by Local Area Banks.
•These Directions consolidate existing regulatory instructions into a single framework for easy reference.
•They come into effect immediately and apply to all Local Area Banks.
•The guidelines define key terms such as customer, transactions, APR, and consumer credit for clarity and consistency.
•Overall, the Directions aim to enhance transparency, protect customers, and promote responsible banking practices.
The detailed notification is given in the document below.
[Notification No.: RBI/DOR/2025-26/244 DOR.MCS.REC.No.163/01-01-035/2025-26]
