Connect 2 Regulate

Certain instructions on responsibilities of an All India Financial Institution (AIFI) employing recovery agents have been issued to AIFIs under the Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all AIFIs under the aforesaid Directions. Accordingly, the draft “Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Certain instructions on matters related to engagement of recovery agents by Rural  Co-operative Banks (RCBs) have been issued to RCBs under the Reserve Bank of India (Rural Co-operative Banks – Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all RCBs under the aforesaid Directions. Accordingly, the draft “Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Certain instructions on matters related to engagement of recovery agents by Urban  Co-operative Banks (UCBs) have been issued to UCBs under the Reserve Bank of India (Urban Co-operative Banks – Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all UCBs under the aforesaid Directions. Accordingly, the draft “Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Certain instructions on matters related to engagement of recovery agents by Regional Rural Banks (RRBs) have been issued to RRBs under the Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all RRBs under the aforesaid Directions. Accordingly, the draft “Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Certain instructions on matters related to recovery of microfinance loans and engagement of recovery agents therefor by Local Area Banks (LABs) have been issued to LABs under the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all LABs under the aforesaid Directions. Accordingly, the draft “Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Certain instructions on matters related to engagement of recovery agents by Small Finance Banks (SFBs) have been issued to SFBs under the Reserve Bank of India (Small Finance Banks – Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all SFBs under the aforesaid directions. Accordingly, the draft “Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Certain instructions on matters related to engagement of recovery agents by banks have been issued to Commercial Banks (other than Small Finance Banks, Payments Banks, Regional Rural Banks, and Local Area Banks) under the Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed. It has also been decided to issue comprehensive instructions on conduct related matters in recovery of loans and engagement of recovery agents to all the Commercial Banks (other than Small Finance Banks, Payments Banks, Regional Rural Banks, and Local Area Banks) under the aforesaid Directions. Accordingly, the draft “Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026” has been issued for public comments.

Reserve Bank had announced, as part of the Statement on Developmental and Regulatory Policies dated February 06, 2026 that revised guidelines on KCC are proposed to be issued consolidating those on agriculture and allied activities, with a view to expand coverage, streamline operational aspects and address emerging requirements.

Reserve Bank had announced, as part of the Statement on Developmental and Regulatory Policies dated February 06, 2026 that revised guidelines on KCC are proposed to be issued consolidating those on agriculture and allied activities, with a view to expand coverage, streamline operational aspects and address emerging requirements.

In view of the release of the draft Amendment Directions on Responsible Business Conduct (“Directions on RBC”), extant regulations governing undertaking of financial services issued vide Reserve Bank of India (Non-Banking Financial Companies - Undertaking of Financial Services) Directions 2025, have also been reviewed and amended. The revised draft regulatory framework aligns the instructions with the “Directions on RBC” and also put in place additional prudential norms for certain businesses.