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RBI Amends Investment Rules for Financial Institutions
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Reserve Bank of Indiabankingregulatorycorporate

RBI Amends Investment Rules for Financial Institutions

October 1, 2026

RBI amends investment portfolio rules for All India Financial Institutions. Focuses on classification and valuation clarity.

RBI Amends Investment Portfolio Rules for Financial Institutions

The Reserve Bank of India has issued the Reserve Bank of India (All India Financial Institutions - Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026, effective September 22, 2026. The amendment modifies Chapter VI of the 2025 Directions to clarify market valuation practices and improve consistency in asset classification.

The update aims to enhance transparency, ensure prudential reporting, and align investment accounting with evolving market conditions and global best practices. Key changes include methodology for marking-to-market of debt securities and guidelines on impairment recognition.

Legal and compliance teams at financial institutions must review internal investment policies and valuation models. These amendments reinforce supervisory expectations around financial stability and accurate representation of asset quality in regulatory returns.

Citations

  • RBI/2026-27/268
Practice Areas:bankingregulatorycorporate

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