The RBI has issued third amendment directions focusing on customer liability in unauthorized electronic transactions for small finance banks, reinforcing responsible business conduct.
Amendments for Small Finance Banks
On June 24, 2026, the Reserve Bank of India (RBI) published the 'Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026'. This directive emphasizes the protection of customers in unauthorized electronic banking transactions.
The directives mandate small finance banks to implement robust measures aimed at safeguarding customer interests, thereby aligning with the government's thrust on responsible banking practices.
It is paramount for legal practitioners advising small finance banks to ensure that their clients are compliant with these amendments, which are crucial for consumer confidence and risk management strategies.
Citations
- Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions (2026) RBI/2026-27/168
