RBI/DOR/2025-26/242 DOR.ACC.REC.161/ 21-02-067/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Prudential Norms on Declaration of Dividends) Directions, 2025 Table of Contents Chapter I - Preliminary 2 A. Short title and commencement 2 B. Applicability 2 C. Definitions 2 Chapter II - Declaration of dividend 4 A. Board Oversight 4 B. Eligibility criteria for declaration of dividend 4 C. Quantum of dividend payable 5 Chapter III - Repeal and other provisions 8 A. Repeal and saving 8 B. Application of other laws not barred 8 C. Interpretations 9 Annex I 10 In exercise of the powers conferred by section 35A of the Banking Regulation Act (BR Act), 1949 and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest and in the interest so to do, hereby, issues the Directions hereinafter specified. Chapter I - Preliminary A. Short title and commencement 1. These Directions shall be called the Reserve Bank of India (Local Area Banks – Prudential Norms on Declaration of Dividends) Directions, 2025. 2. These Directions shall come into effect immediately upon issuance. B. Applicability 3. These Directions shall be applicable to Local Area Banks (LABs) (hereinafter collectively referred to as 'banks' and individually as a 'bank').

RBI/DOR/2025-26/243 DOR.AML.REC.No.162/14.01.008/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025 Table of Contents Chapter I – Preliminary 4 A. Short Title and Commencement 4 B. Applicability 4 C. Definitions 4 Chapter II – General 16 A. Board of Directors / Policies related guidelines: 16 B. Other General Guidelines: 18 Chapter III – Customer Acceptance Policy 20 Chapter IV – Risk Management 22 Chapter V – Customer Identification Procedure (CIP) 23 Chapter VI – Customer Due Diligence (CDD) Procedure 25 A. CDD Procedure in case of Individuals 25 B. CDD Measures for Sole Proprietary firms 37 C. CDD Measures for Legal Entities 38 D. Identification of Beneficial Owner 40 E. On-going Due Diligence 41 F. Enhanced and Simplified Due Diligence Procedure 47 F.1 Enhanced Due Diligence 47 F.2 Simplified Due Diligence 49 Chapter VII – Record Management 55 Chapter VIII – Reporting Requirements to Financial Intelligence Unit – India 57 Chapter IX – Requirements/obligations under International Agreements - Communications from International Agencies 59 Chapter X – Other Instructions 63 Chapter XI – Repeal and Other Provisions 76 A. Repeal and Saving 76 B. Application of other laws not barred 76 C. Interpretations 76 Annex I 78 Annex II 93 Introduction In order to prevent banks and other financial institutions from being used as a channel for Money Laundering (ML)/ Terrorist Financing (TF) and to ensure the integrity and stability of the financial system, efforts are continuously being made both internationally and nationally, by way of prescribing various rules and regulations.

RBI/DOR/2025-26/244 DOR.MCS.REC.No.163/01-01-035/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025 Table of Contents Chapter I – Preliminary 3 Chapter II – Institutional Framework 9 Chapter III - Customer Service in Branches 11 Chapter IV - Customer Guidance and Protection 13 Chapter V - Financial Inclusion and Accessibility 15 Chapter VI - Payment and Remittance Services 17 Chapter VII - Deposit and Other Liabilities 18 Chapter VIII - Responsible Lending Conduct 49 Chapter IX – Miscellaneous 65 Chapter X - Repeal and Other Provisions 66 Annex I - Forms for inventory 68 Annex II - Settlement of Claims 71 Annex III - Claim form for Accounts with Nominee(s) / Survivorship clause 74 Annex IV - Claim form for Accounts without Nominee / Survivorship clause 78 Annex V - Bond of indemnity / Surety for Deposit accounts 83 Annex VI - Letter of Disclaimer / No objection 86 Annex VII - Declaration / Affidavit 88 Annex VIII - Inventory form and Acknowledgement for Safe Deposit Lockers 90 Annex IX - Inventory Form for Articles in Safe Custody 93 Annex X - Bond of indemnity with respect to delivery of contents of Safe Deposit Locker / Articles kept in Safe Custody 95 Annex XI - Key Facts Statement 97   Introduction Customer service holds great significance in the financial services sector. The Reserve Bank of India has, over the years, issued various instructions with a focus on enhancing the level of customer service and ensuring fair conduct towards customers by banks. These directions are issued with an aim to consolidate the various regulatory instructions on customer service and conduct aspects issued by the Reserve Bank of India to Local Area Banks at one place.

RBI/2025-26/245 DOR.ORG.REC.No.164/21-04-158/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Managing Risks in Outsourcing) Directions, 2025 Table of Contents CHAPTER I – PRELIMINARY 3 A. Short Title and Commencement 3 B. Applicability and Scope 3 C. Definitions 5 CHAPTER II – ROLE OF THE BOARD 8 A. Board-Approved Policy 8 B. Key Responsibilities 8 CHAPTER III – OUTSOURCING OF INFORMATION TECHNOLOGY (IT) SERVICES 9 A. Authorisation, Accountability, and Oversight 9 B. Governance Framework 10 B.1 Outsourcing Policy 10 B.2 Role of Senior Management 11 B.3 Role of IT Function 12 C. Risk Management 12 C.1 Risk Management Framework 12 C.2 Confidentiality and Security of Information 13 D. Outsourcing Process 14 D.1 Service Provider Evaluation 14 D.2 Outsourcing Agreement 15 D.3 Monitoring and Control of Outsourced Services 18 D.4 Inventory of Outsourced Services 20 D.5 Business Continuity and Management of Disaster Recovery Plan 20 D.6 Exit Strategy 20 D.7 Termination 21 E. Specific Outsourcing Arrangements 21 E.1 Outsourcing within a Group / Conglomerate 21 E.2 Offshore or Cross-Border Outsourcing 22 E.3 Outsourcing of Security Operations Centre (SOC) 22 E.4 Usage of Cloud Computing Services 23 F. Redressal of Grievances related to Outsourced Services 28 CHAPTER IV – REPEAL AND OTHER PROVISIONS 30 A. Repeal and Saving 30 B. Application of other laws not barred 30 C. Interpretations 31 In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified. Chapter I – Preliminary A. Short Title and Commencement 1. These Directions shall be called the Reserve Bank of India (Local Area Banks - Managing Risks in Outsourcing) Directions, 2025. 2. These Directions shall come into force with immediate effect. Provided that a bank’s existing Information Technology (IT) outsourcing agreements regardless of whether they are due for renewal on or after the effective date of these Directions shall comply with the provisions of these Directions either at the time of renewal or by April 10, 2026, whichever is earlier. However, the bank’s new IT outsourcing agreements that come into force on or after the effective date of these Directions, shall comply with the provisions of these Directions from the date of agreement itself. Provided further that nothing in the preceding proviso shall be construed as permitting non-compliance with any other extant regulatory instructions or statutory requirements applicable to such arrangements.

RBI/DOR/2025-26/247 DOR.LIC.REC.No.166/22-00-001/2025-26 November 28, 2025 Reserve Bank of India (Regional Rural Banks - Branch Authorisation) Directions, 2025

RBI/DOR/2025-26/384 DOR.RAUG.AUT.REC.307/24.01.041/2025-26 November 28, 2025 Reserve Bank of India (Regional Rural Banks – Digital Banking Channels Authorisation) Directions, 2025

RBI/DOR/2025-26/248 DoR.AUT.REC.No.167/24-01-041/2025-26 November 28, 2025 Reserve Bank of India (Regional Rural Banks – Undertaking of Financial Services) Directions, 2025

RBI/DOR/2025-26/249 DOR.GOV.REC.No.168/29.67.001/2025-26 November 28, 2025 Reserve Bank of India (Regional Rural Banks - Governance) Directions

RBI/DOR/2025-26/250 DOR.RET.REC.169/12-01-001/2025-26 November 28, 2025 Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on December 11, 2025)