The RBI has released new amendment directions for Payments Banks aimed at enhancing the classification and valuation of their investment portfolios amidst operational challenges.
RBI Issues Amendment Directions for Payments Banks
On May 18, 2026, the Reserve Bank of India (RBI) introduced Amendment Directions for Payments Banks concerning the classification, valuation, and operation of their investment portfolios. This update is a direct response to operational constraints identified previously.
These amendments are designed to enhance the management of Investment Fluctuation Reserves (IFRs) within Payments Banks, ensuring they align with best practice standards.
Legal professionals advising payments banks will need to inform their clients of these changes, which necessitate a review and possible revision of internal compliance and reporting mechanisms.
Citations
- Reserve Bank of India (Payments Banks - Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions (2026)
