The Reserve Bank of India has updated guidelines for small finance banks regarding customer protection in unauthorized electronic transactions, enhancing their accountability.
RBI Updates Responsible Business Conduct Directions for SFBs
On June 24, 2026, the Reserve Bank of India (RBI) introduced the Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026, focusing on customer protection in electronic banking.
The revised instructions outline the responsibilities of small finance banks (SFBs) in limiting customer liability during unauthorized electronic transactions. This is part of the RBI's commitment to bolster the trustworthiness of financial institutions in protecting consumer interests and ensuring secure banking transactions.
Legal professionals in the banking sector should keep these updates in mind for advising small finance banks on compliance matters and consumer protection during electronic transactions. Emphasis should be placed on aligning operational practices with these guidelines to minimize liabilities and enhance customer assurance.
