The Reserve Bank of India has issued draft amendments to the Securitisation Transactions Regulations, aiming to enhance efficiency, liquidity, and transparency in the securitisation process.
Drafters Amendments to Securitisation Transactions Regulations
On July 29, 2026, the Reserve Bank of India (RBI) released draft amendments aimed at improving the efficiency, liquidity, and transparency of securitisation transactions. This initiative includes revisions to the 'Commercial Banks - Securitisation Transactions' and 'Small Finance Banks - Securitisation Transactions' Directions along with updates pertinent to Non-Banking Financial Companies (NBFCs).
The draft amendments are a response to evolving market conditions and the necessity for clearer operational guidelines that enhance confidence among participants in the securitisation process. By inviting public comments, the RBI aims to fortify the framework governing these transactions.
Changes are expected to address concerns related to the issuance and transfer of Securitisation Notes (SNs) while simplifying the regulatory landscape for financial institutions. This is critical in light of the growing significance of securitisation in the financial market.
Practitioners in financial law and banking will need to review these proposed changes closely, as they will significantly affect how securitisation transactions are structured and conducted, and thus impact their clients’ business operations.
Citations
- RBI Draft Amendments (2026) RBI Press Release