The Reserve Bank of India (Regional Rural Banks – Miscellaneous) Supervisory Directions,
2026, issued on 31 July 2026, consolidate supervisory instructions for Regional Rural Banks
(RRBs) relating to fair lending practices and frauds in loans and advances. Issued under
Section 35A read with Section 51 of the Banking Regulation Act, 1949, the Directions came
into effect immediately and aim to enhance transparency, customer protection, and
supervisory compliance.
The Directions require RRBs to ensure interest is charged only from the actual date of loan
disbursement, calculate EMIs on the actual amount disbursed, communicate any changes in
the amortisation schedule, and charge interest only for the period the loan remains
outstanding. They also permit online account transfers for loan disbursement instead of
cheques. Additionally, where a prima facie fraud involving loan officials is detected, the RRB
must initiate appropriate action in consultation with the Central Bureau of Investigation (CBI)
in accordance with Central Vigilance Commission (CVC) guidelines.
