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RBI Issues Third Amendment Directions for Small Finance Banks' Interest Rates
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Reserve Bank of Indiabanking

RBI Issues Third Amendment Directions for Small Finance Banks' Interest Rates

September 6, 2026

The RBI has issued Third Amendment Directions concerning the interest rates on deposits for small finance banks. This amendment aims to enhance the regulatory framework for such banks.

RBI Issues Third Amendment Directions for Small Finance Banks' Interest Rates

The Reserve Bank of India announced the Third Amendment Directions focused on the interest rates applicable on deposits for small finance banks effective August 25, 2026. This is part of the ongoing regulatory adaptations to better reflect market conditions.

This change permits small finance banks to establish flexible interest rate structures for deposits, enhancing their ability to compete effectively in the financial sector.

Legal professionals advising small finance banks should keep abreast of these changes and facilitate compliance with the updated regulations to ensure the banks operate within the stipulated legal framework.

Citations

  • RBI Circular No. 244 (2026) DOR.SOG(SPE).REC.212/13.03.00
Practice Areas:banking

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