Commercial Banks Undertaking Financial Services Amendment Directions 2026
Summary
The Reserve Bank of India issued Amendment Directions (Revised) modifying paragraph 18(4) of Chapter-III of the Commercial Banks – Undertaking of Financial Services Directions, 2025. The amendments replace provisions on acquisition finance and bridge finance for promoter's stakes in new companies and lending to individuals against eligible securities. These changes take effect from the date banks implement the related Credit Facilities Amendment Directions or July 1, 2026, whichever is earlier.
What changed
The RBI has amended specific provisions in paragraph 18(4) of Chapter-III 'General Guidelines' of the Commercial Banks Financial Services Directions, 2025. Sub-paragraph (ii)(a)iii is replaced with language covering 'Acquisition finance and bridge finance for financing of promoter's stake in new companies,' and sub-paragraph (ii)(b) is replaced with 'Lending to individuals against eligible securities.' This revision supersedes the February 13, 2026 Amendment Directions and aligns with the concurrent Credit Facilities Amendment Directions dated March 30, 2026.
Commercial banks undertaking financial services must implement these amendments by the earlier of their chosen implementation date for the related Credit Facilities Directions or July 1, 2026. Banks should review internal policies, lending frameworks, and compliance systems to ensure alignment with the revised definitions for acquisition finance, bridge finance, and securities-based lending to individuals. Non-compliance may attract supervisory action under the Banking Regulation Act, 1949.
What to do next
- Review the amended paragraph 18(4) provisions on acquisition finance, bridge finance, and securities lending
- Update internal lending policies to reflect the revised definitions for promoter stake financing and individual lending against eligible securities
- Implement changes by July 1, 2026 or earlier if adopting the related Credit Facilities Amendment Directions
Archived snapshot
Mar 31, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Notifications
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| Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 (Revised) | |
| | RBI/2025-26/258
DOR.CRE.REC.450/24-01-041/2025-26
March 30, 2026
Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 (Revised)
Please refer to the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (hereinafter referred to as 'the Directions').
On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026, and in exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions (Revised) hereinafter specified.
The Amendment Directions (Revised) modify paragraph 18(4) of 'Chapter-III 'General Guidelines' of the Directions as under:
3 (1) The sub-paragraph (ii)(a)iii shall be substituted with the following:
"Acquisition finance and bridge finance for financing of promoter's stake in new companies"
3(2) The sub-paragraph (ii)(b) shall be substituted with the following:
"Lending to individuals against eligible securities"
- The above revised amendments shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026 or from July 1, 2026, whichever is earlier, and shall supersede the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 dated February 13, 2026.
Vaibhav Chaturvedi
(Chief General Manager) | | RBI/2025-26/258
DOR.CRE.REC.450/24-01-041/2025-26
March 30, 2026
Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 (Revised)
Please refer to the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (hereinafter referred to as 'the Directions').
On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026, and in exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions (Revised) hereinafter specified.
The Amendment Directions (Revised) modify paragraph 18(4) of 'Chapter-III 'General Guidelines' of the Directions as under:
3 (1) The sub-paragraph (ii)(a)iii shall be substituted with the following:
"Acquisition finance and bridge finance for financing of promoter's stake in new companies"
3(2) The sub-paragraph (ii)(b) shall be substituted with the following:
"Lending to individuals against eligible securities"
- The above revised amendments shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026 or from July 1, 2026, whichever is earlier, and shall supersede the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 dated February 13, 2026.
Vaibhav Chaturvedi
(Chief General Manager) |
| RBI/2025-26/258
DOR.CRE.REC.450/24-01-041/2025-26
March 30, 2026
Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 (Revised)
Please refer to the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (hereinafter referred to as 'the Directions').
On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026, and in exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions (Revised) hereinafter specified.
The Amendment Directions (Revised) modify paragraph 18(4) of 'Chapter-III 'General Guidelines' of the Directions as under:
3 (1) The sub-paragraph (ii)(a)iii shall be substituted with the following:
"Acquisition finance and bridge finance for financing of promoter's stake in new companies"
3(2) The sub-paragraph (ii)(b) shall be substituted with the following:
"Lending to individuals against eligible securities"
- The above revised amendments shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026 or from July 1, 2026, whichever is earlier, and shall supersede the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 dated February 13, 2026.
Vaibhav Chaturvedi
(Chief General Manager) | |
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