The Reserve Bank of India has released Third Amendment Directions for Small Finance Banks regarding customer liability in electronic banking.
RBI Updates Directions for Small Finance Banks on Customer Protection
The Reserve Bank of India (RBI) has issued the Third Amendment Directions for Small Finance Banks (SFBs), concentrated on limiting customer liability in unauthorized electronic banking transactions. This initiative aligns with the RBI’s ongoing efforts to enhance customer security in the banking sector.
These amendments are designed to ensure that SFBs implement comprehensive risk management and protective measures, thereby shielding customers from potential losses due to electronic fraud.
Legal advisors and banking professionals must ensure that their SFB clients adhere to these updated directions. Maintaining compliance will protect consumer interests and promote a secure banking environment, which is increasingly crucial in today’s digital age.
Citations
- Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026