Commercial Banks Financial Services Amendment Directions
Summary
The Reserve Bank of India issued amendment directions modifying paragraph 18(4) of Chapter-III of the Commercial Banks – Undertaking of Financial Services Directions. The amendments revise provisions on acquisition finance and bridge finance for promoter's stakes in new companies, and update lending terms for individuals against eligible securities. Banks must implement these changes by July 1, 2026 or upon deciding to implement the related Credit Facilities Amendment Directions, whichever is earlier.
What changed
The RBI has amended two specific sub-provisions under paragraph 18(4) of the Directions. Sub-paragraph (ii)(a)iii is revised to specify 'Acquisition finance and bridge finance for financing of promoter's stake in new companies.' Sub-paragraph (ii)(b) is revised to state 'Lending to individuals against eligible securities.' These amendments supersede the previous amendment directions issued on February 13, 2026.
Banks should review their internal policies and credit procedures to ensure alignment with the revised definitions for acquisition finance and individual lending against securities. Compliance is required by July 1, 2026, or the date the bank chooses to implement the related Credit Facilities Amendment Directions, whichever is earlier. No specific penalties are stated for non-compliance.
What to do next
- Review paragraph 18(4) of Chapter-III General Guidelines against current lending policies
- Update internal credit procedures for acquisition finance and bridge finance to new companies
- Align individual lending practices against eligible securities with the revised definition
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.
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_________________________ RESERVE BANK OF INDIA ______________________
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
, , , 12/ 13 , , , - 400001 / Tel No: 22661602, 22601000 / Fax No: 022-2270 5691 Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
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(Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 dated February 13, 2026. Vaibhav Chaturvedi (Chief General Manager)
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