Reserve Bank of India (Small Finance Banks – Miscellaneous) Supervisory Directions, 2026.

The RBI (Small Finance Banks – Miscellaneous) Supervisory Directions, 2026 apply to all Small Finance Banks and aim to strengthen governance, operational controls, customer protection, and fraud risk management. The Directions require banks to provide RBI supervisory access to IT systems, ensure proper monitoring of loan end-use, follow fair lending practices, improve KYC and nomination processes, and reduce inoperative accounts. The Directions also mandate robust fraud prevention measures, internal controls, legal compliance audits, vigilance mechanisms, and a Protected Disclosure Scheme for reporting misconduct. Banks must maintain best practices, ensure regulatory compliance, and follow RBI guidelines, with RBI empowered to issue clarifications and enforce compliance.