Regulating Commercial Banking

The Reserve Bank of India had, on October 03, 2025, issued eight draft Directions on Lending to Related Parties, viz.,: (i) Reserve Bank of India (Commercial Banks – Lending to Related Parties) Directions, 2025 (ii) Reserve Bank of India (Small Finance Banks – Lending to Related Parties) Directions, 2025 (iii) Reserve Bank of India (Regional Rural Banks – Lending to Related Parties) Directions, 2025 (iv) Reserve Bank of India (Local Area Banks – Lending to Related Parties) Directions, 2025 (v) Reserve Bank of India (Urban Co-operative Banks – Lending to Related Parties) Directions, 2025 (vi) Reserve Bank of India (Rural Co-operative Banks – Lending to Related Parties) Directions, 2025 (vii) Reserve Bank of India (Non-Banking Financial Companies – Lending to Related Parties) Directions, 2025 and (viii) Reserve Bank of India (All India Financial Institutions – Lending to Related Parties) Directions, 2025 seeking feedback from stakeholders. The draft directions were aimed primarily at providing a harmonised, principle-based framework to be adopted by REs while lending to related parties, suitably rationalising the existing provisions.

A) Analysis of the performance under the Citizen’s Charter during the month of December 2025 has been carried out, and the summary thereof is given below – Description No. of Applications A Applications pending at the beginning of the month 3,217 B Applications received during the month 24,544 C Referred back to applicants for additional information 388

The Reserve Bank of India had, on October 24, 2025, issued draft Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Amendment Directions, 2025 seeking feedback from stakeholders. The amendment directions were aimed primarily at aligning risk weights with the actual risk characteristics of operational infrastructure projects thereby promoting better risk assessment and capital allocation.

Today, in compliance with Section 36 (2) of the Banking Regulation Act, 1949, the Reserve Bank of India released the Report on Trend and Progress of Banking in India 2024-25. This Report presents the performance of the banking sector, including commercial banks, co-operative banks and non-banking financial institutions, during 2024-25 and 2025-26 so far.

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs, SFBs and PBs) ALL SCHEDULED BANKS 13-Dec-2024 28-Nov-2025* 12-Dec-2025* 13-Dec-2024 28-Nov-2025* 12-Dec-2025* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 310793.89 322855.52 308250.18 315564.52 330192.04 315428.19** b) Borrowings from banks 131991.65 78658.89 81098.47 132026.65 78790.89 81166.47 c) Other demand & time liabilities 24423.19 31092.93 33036.68 24724.99 31559.27 33573.84

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs, SFBs and PBs) ALL SCHEDULED BANKS 29-Nov-2024 14-Nov-2025* 28-Nov-2025* 29-Nov-2024 14-Nov-2025* 28-Nov-2025* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 273721.88 350935.17 322854.52 278500.30 357857.15 330191.04** b) Borrowings from banks 137597.04 81533.54 79669.56 137620.00 81560.54 79747.56 c) Other demand & time liabilities 24717.72 26997.34 31145.33 25053.36 27514.50 31611.67 II LIABILITIES TO OTHERS (A)

The Reserve Bank of India had, on October 1 2025, issued seven draft Directions on Transaction Accounts, viz., (i) Reserve Bank of India (Commercial Banks – Transaction Accounts) Directions, 2025; (ii) Reserve Bank of India (Small Finance Banks – Transaction Accounts) Directions, 2025; (iii) Reserve Bank of India (Payments Banks – Transaction Accounts) Directions, 2025; (iv) Reserve Bank of India (Local Area Banks – Transaction Accounts) Directions, 2025; (v) Reserve Bank of India (Regional Rural Banks – Transaction Accounts) Directions, 2025; (vi) Reserve Bank of India (Urban Co-operative Banks – Transaction Accounts) Directions, 2025; and (vii) Reserve Bank of India (Rural Co-operative Banks – Transaction Accounts) Directions, 2025 seeking feedback from stakeholders. The draft directions were aimed primarily at rationalising the extant provisions to provide greater flexibility to banks for opening and maintaining cash credit accounts, current accounts and overdraft accounts.

The Governor, Reserve Bank of India, met the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks in Mumbai today (December 9, 2025). These interactions form part of the Reserve Bank’s ongoing engagement with the senior management of regulated entities; the previous such meeting was held on January 27, 2025. The meetings were also attended by Deputy Governors Shri T Rabi Sankar, Shri Swaminathan J, Dr. Poonam Gupta and Shri S C Murmu, along with the Executive Directors-in-Charge of Supervision, Regulation, Enforcement, and Consumer Education and Financial Inclusion.