Reserve Bank of India (Local Area Banks – Miscellaneous) Supervisory Directions, 2026.

The Reserve Bank of India (Local Area Banks – Miscellaneous Supervisory Directions, 2026), issued on July 31, 2026, consolidate various supervisory requirements for Local Area Banks relating to fair lending practices, inoperative accounts, fraud prevention, whistle- blower protection, vigilance, network management, and cybersecurity. The Directions require banks to ensure transparent interest charging, reduce inoperative accounts through simplified KYC updation, strengthen internal controls against fraud, and establish robust vigilance and protected disclosure mechanisms. The Directions also mandate IPv6-enabled network infrastructure, prescribe cybersecurity controls for third-party ATM Switch Application Service Providers, and require compliance with security standards, vulnerability assessments, incident response, and business continuity measures. Earlier directions on these subjects are repealed to create a uniform, technology-driven supervisory framework for Local Area Banks.