Regulating Commercial Banking

The Reserve Bank through its public awareness initiatives, has been encouraging members of public to activate their inoperative accounts and claim their unclaimed deposits from the banks. In this endeavour, to encourage the banks to actively pursue customers/ depositors for re-activation of their inoperative accounts and return of their unclaimed amounts lying with Depositor Education and Awareness (DEA) Fund, the Reserve Bank of India today announced a ‘Scheme for Facilitating Accelerated Payout - Inoperative Accounts and Unclaimed Deposits’. The Scheme aims to reduce both the stock of existing unclaimed deposits and fresh accretion of flows to the DEA Fund. It will run for a period of one year, viz., October 01, 2025 to September 30, 2026.

The Reserve Bank of India (RBI) has today issued seven Directions/Circulars, proposing to amend some of the extant Directions/Circulars applicable to banks and other regulated entities. While three of these amendments come into effect immediately (Part A), public comments are solicited on the other four (Part B).

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs,SFBs and PBs) ALL SCHEDULED BANKS 06-Sep-2024 22-Aug-2025* 05-Sep-2025* 06-Sep-2024 22-Aug-2025* 05-Sep-2025* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 298116.19 346928.84 322142.98 302401.77 354508.87 329710.26** b) Borrowings from banks 128865.30 100383.06 96816.68 129153.89 100411.43 96885.30 c) Other demand & time liabilities 23518.75 24498.34 28046.56 23846.90 25023.28 28547.67 II LIABILITIES TO OTHERS (A) a) Deposits (other than from banks) 21550315.52 23504534.61 23669753.44 22002066.95 23999553.75 24165517.81 i) Demand 2457243.56 2889394.78 2892106.55 2505648.23 2939197.45 2943330.22 ii) Time 19093071.95 20615139.83 20777646.89 19496418.71 21060356.30 21222187.60 b) Borrowings @ 843672.46 862408.87 816469.05 847826.98 866787.67 820798.87 c) Other demand & time liabilities 1052347.33 1033325.08 1115663.05 1066192.83 1047572.60 1131645.50 III BORROWINGS FROM R.B.I. (B) 7740.00 1818.00 3936.00 7740.00 1818.00 3936.00

In continuation of the Framework for Formulation of Regulations , the Reserve Bank of India has decided to strengthen the institutional mechanism for review of regulations and has constituted a Regulatory Review Cell (RRC). 2. The mandate of the RRC is to ensure that all the regulations issued by the Bank are subject to a comprehensive and systematic internal review every 5 to 7 years. The RRC shall be set up in the Department of Regulation effect from October 1, 2025 and would undertake the review of regulations in a phased manner.

A comprehensive review of the various services offered by Reserve Bank of India under Citizens’ Charter and Regulatory Approvals was undertaken and the revised Citizen’s Charter was released on July 1, 2025. 2. An analysis of the performance under

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs,SFBs and PBs) ALL SCHEDULED BANKS 09-Aug-2024 25-Jul-2025* 08-Aug-2025* 09-Aug-2024 25-Jul-2025* 08-Aug-2025* LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 291422.53 342422.14 341955.78 295618.64 347963.84 349533.04** b) Borrowings from banks 130962.87 105206.09 100840.03 130982.37 105216.43 100849.93 c) Other demand & time liabilities 76963.73 22326.92 25575.97 77260.46 22827.68 26107.24 LIABILITIES TO OTHERS (A) a) Deposits (other than from banks) 21329643.09 23349826.99 23473888.12 21780903.56 23843714.65 23970007.08

Please refer to instructions on Counterparty Credit Risk (CCR) as contained in paragraph 5.15.3 of the Master Circular DOR.CAP.REC.2/21.06.201/2025-26 dated April 1, 2025 on ‘Basel III Capital Regulations’. Reserve Bank has released today the draft circular on Counterparty Credit Risk: Add-on factors for computation of Potential Future Exposure – Revised Instructions which modifies the aforementioned instructions.

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs,SFBs and PBs) ALL SCHEDULED BANKS 26-Jul-2024 11-Jul-2025* 25-Jul-2025* 26-Jul-2024 11-Jul-2025* 25-Jul-2025* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 281386.40 341401.19 342422.12 285474.81 347250.78 348027.21** b) Borrowings from banks 138751.80 95570.56 105206.09 138778.69 95575.46 105216.43 c) Other demand & time liabilities 75507.30 22524.44 22320.87 75768.14 23038.31 22838.72

The Reserve Bank has decided to grant 'in-principle’ approval to AU Small Finance Bank Limited (AUSFB) for transitioning from a Small Finance Bank (SFB) to a Universal Bank.

In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated August 06, 2025 regarding the review of extant regulatory guidelines on settlement of claims in respect of deceased depositors, Reserve Bank has released today the draft circular in this regard.