Second Amendment Directions, 2026 refine investment portfolio norms for Payments Banks to ensure fair valuation practices.
RBI Updates Investment Rules for Payments Banks
The Reserve Bank of India has notified the Reserve Bank of India (Payments Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026. These amendments, effective September 22, 2026, revise Chapter IX of the 2025 Directions to clarify fair valuation of investments.
The changes aim to standardise valuation methodologies across Payments Banks, which are restricted to holding government securities and low-risk instruments. Enhanced reporting and internal control mechanisms are expected to improve investor and regulatory confidence.
Practitioners should advise clients on compliance with the updated documentation and reporting standards. Given the narrow operational scope of Payments Banks, these norms are critical to maintaining financial integrity and consumer trust.