The Reserve Bank of India has issued the Fourth Amendment to the Responsible Business Conduct Directions for Small Finance Banks, focusing on revised guidelines for recovery agents.
Fourth Amendment on Small Finance Banks Conduct Guidelines
On August 6, 2026, the Reserve Bank of India published the Fourth Amendment Directions concerning Responsible Business Conduct for Small Finance Banks (SFBs). The amendment revises the ethical standards and operational guidelines regarding the employment of recovery agents.
These new guidelines are intended to maintain consumer trust and ensure that recovery practices are fair and non-coercive, thereby enhancing the overall finance climate for borrowers.
Legal counsel for SFBs must stay abreast of these changes and ensure that their clients develop the necessary compliance frameworks to align with the new regulatory expectations.
Citations
- Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Fourth Amendment Directions (2026)