The RBI has issued new directives for Small Finance Banks to enhance customer protections in unauthorized electronic transactions, a move aimed at increasing consumer trust.
Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026
On June 24, 2026, the Reserve Bank of India promulgated the Third Amendment Directions for Small Finance Banks (SFBs). These directions emphasize responsible business conduct, particularly regarding customer liability in unauthorized electronic banking transactions.
The new guidelines aim to consolidate rules relating to customer protections, ensuring that liabilities are clearly defined, which is imperative for maintaining customer trust in digital banking services.
Legal practitioners entered into advising Small Finance Banks should update compliance protocols according to these directives. Understanding and implementing the new rules on customer protection will be key in fostering a trustworthy banking environment.
Citations
- Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026