RBI Update - Reserve Bank of India (Small Finance Banks – Credit Facilities) Fourth Amendment Directions, 2026

The Reserve Bank of India has issued the Reserve Bank of India (Small Finance Banks – Credit Facilities) Fourth Amendment Directions, 2026, with immediate effect, amending the Small Finance Banks – Credit Facilities Directions, 2025. The amendment inserts an explanation under paragraph 78 clarifying that where a project can be operationalised as multiple independent and viable units, a Small Finance Bank may, at its discretion, finance such units as separate projects with independent financial closure, subject to an ex-ante appraisal of each unit’s standalone viability. Additionally, an explanation has been added to paragraph 80 specifying that, for electricity generation projects that include both generation and transmission (evacuation infrastructure) components, the right of way requirement for the transmission portion may be determined in accordance with sub-paragraph (3).