Second Amendment Directions issued for Payments Banks to standardise investment valuation. Ensures consistent and transparent portfolio management.
RBI Issues Second Amendment to Payments Banks Investment Rules
The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026, effective September 22, 2026. This amendment revises Chapter IX of the 2025 Directions to strengthen the fair valuation framework for investments held by Payments Banks.
The update mandates uniform valuation practices, enhances disclosures, and tightens compliance with prudential norms. It addresses gaps in the treatment of hybrid instruments and complex debt securities in light of evolving market practices.
Legal teams must ensure that investment accounting policies are aligned with the revised guidelines. Given the restricted operational model of Payments Banks, these amendments reinforce financial integrity and consumer protection in low-cost banking operations.
Citations
- RBI/2026-27/267
