The Reserve Bank of India (RBI) on June 23, 2026, issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Fourth Amendment Directions, 2026 to further amend the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
The following has been stated:
After Chapter II of the Directions, a new Chapter IIA: Credit Facilities Linked to Specific Payment Instruments has been inserted:
5A. Notwithstanding the mode / channel of credit delivery or the type of payment instrument and / or underlying technology used for its disbursement, the prudential treatment of an underlying credit facility, including pre-sanctioned credit lines meant for payment transactions through UPI, shall be solely determined by the nature of the underlying credit facility, governed in terms of the applicable prudential norms.
5B. Any credit facility which is designed to be linked to a specific payment mode, shall have its terms and conditions included in the bank’s credit policy and shall comply with all other applicable regulatory requirements.
Explanation – For avoidance of any doubt, it is clarified that only such credit facilities as are otherwise permitted to be sanctioned by a bank under the extant regulations, can be offered as part of any such arrangement.
5C. The above instructions shall be without derogation to the provisions of any other law or regulation in relation to transactions effected through any payment mechanism.
[RBI/2026-27/152]
