On December 05, 2025, the Reserve Bank of India (RBI) issued amendment directions for Reserve Bank of India (Undertaking of Financial Services) Directions, 2025. This follows the draft circular on 'Forms of Business and Prudential Regulation for Investments' issued on October 04, 2024, for which feedback was sought from banks and stakeholders, aimed at reviewing ringfencing regulations for banks' core business. The feedback was examined and incorporated in the final directions, as detailed in the Annex.
RBI issued five Amendment Directions to amend extant instructions on Undertaking of Financial Services for various regulated entities:
1. Reserve Bank of India (Commercial Banks –Undertaking of Financial Services) Amendment Directions, 2025.
2. Reserve Bank of India (Small Finance Banks –Undertaking of Financial Services) Amendment Directions, 2025.
3. Reserve Bank of India (Payments Banks –Undertaking of Financial Services) Amendment Directions, 2025.
4. Reserve Bank of India (Non-Banking Financial Companies –Undertaking of Financial Services) Amendment Directions, 2025.
5. Reserve Bank of India (Non-Operative Financial Holding Companies) Amendment Directions, 2025.
The Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001 can be contacted at Phone: 022 - 2266 0502 and email: helpdoc@rbi.org.in. The website is www.rbi.org.in/hindi and www.rbi.org.in. The press release number is 2025-2026/1640. Brij Raj, Chief General Manager.
Key Entities Referenced
Reserve Bank of India (Undertaking of Financial Services) Directions, 2025: Umbrella term for the amendment directions issued by RBI regarding Undertaking of Financial Services
Reserve Bank of India: The central bank of India, issuer of the directions.
Reserve Bank of India (Commercial Banks –Undertaking of Financial Services) Amendment Directions, 2025: Amendment directions for commercial banks.
Reserve Bank of India (Small Finance Banks –Undertaking of Financial Services) Amendment Directions, 2025: Amendment directions for small finance banks.
Forms of Business and Prudential Regulation for Investments: The draft circular, for which feedback was sought, that led to the amendment directions
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 05, 2025
RBI issues Amendment Directions for Reserve Bank of India
(Undertaking of Financial Services) Directions, 2025
The Reserve Bank of India had issued draft circular on ‘Forms of Business and
Prudential Regulation for Investments’ on October 04, 2024, seeking feedback from
banks and other stakeholders. The objective of the draft circular was to review
regulations on ringfencing of banks’ core business from other risk bearing non-core
businesses as also to provide level playing field.
2. Feedback received on the draft has been examined and suitably incorporated in
the final directions. A statement on the feedback received for the draft circular is
provided in the Annex.
3. Accordingly, the Reserve Bank of India has today issued the following five
Amendment Directions to amend the extant instructions on Undertaking of Financial
services by various regulated entities.
(1) Reserve Bank of India (Commercial Banks –Undertaking of Financial Services)
Amendment Directions, 2025.
(2) Reserve Bank of India (Small Finance Banks –Undertaking of Financial Services)
Amendment Directions, 2025.
(3) Reserve Bank of India (Payments Banks –Undertaking of Financial Services)
Amendment Directions, 2025.
(4) Reserve Bank of India (Non-Banking Financial Companies –Undertaking of
Financial Services) Amendment Directions, 2025.
(5) Reserve Bank of India (Non-Operative Financial Holding Companies) Amendment
Directions, 2025.
(Brij Raj)
Press Release: 2025-2026/1640 Chief General Manager