The RBI has issued new guidelines for Small Finance Banks to promote consumer protection in unauthorized electronic transactions.
RBI (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026
On June 24, 2026, the Reserve Bank of India announced the Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions. These directions emphasize customer protection regarding unauthorized electronic banking transactions in Small Finance Banks.
The amendment consolidates instructions aimed at limiting customer liability in unauthorized transactions, reinforcing the framework for consumer protection. This is part of a broader effort by the RBI to enhance trust in small finance banking services.
Legal practitioners advising Small Finance Banks should ensure adherence to these updated guidelines to mitigate potential liabilities and promote secure banking practices amongst consumers, as these amendments highlight the growing importance placed on consumer rights in the banking sector.
Citations
- RBI (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026