The Reserve Bank of India has updated its third amendment directions for local area banks on customer protection in electronic banking transactions.
RBI Releases Third Amendment for Local Area Banks
On June 24, 2026, the Reserve Bank of India (RBI) issued the 'RBI (Local Area Banks - Responsible Business Conduct) Third Amendment Directions, 2026', focusing on customer protection in electronic banking.
This amendment consolidates the instructions regarding customer liability limitations in unauthorized electronic transactions, reflecting the need for safeguards as digital banking continues to grow.
Local area banks should ensure timely compliance with these amendments to enhance customer trust and adhere to regulatory mandates.
Citations
- RBI Third Amendment Directions (2026) Volume 1 Page 1
Practice Areas:banking
