Regulating Commercial Banking

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.

The Reserve Bank has today granted ‘in-principle’ approval to Fino Payments Bank Limited (FPBL) for conversion into a Small Finance Bank (SFB). Background RBI has issued the Guidelines for ‘on tap’ licensing of SFBs in the private sector (the guidelines). As per the guidelines, existing Payments Banks which are controlled by residents and have completed five years of operations are eligible for conversion into SFBs. The application of FPBL was assessed as per the procedure laid down in the guidelines.

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.

The Reserve Bank of India has, from time to time, issued several instructions/ guidelines to co-operative banks, i.e., Primary (Urban) Co-operative Banks (UCBs), State Co-operative banks (StCBs) and District Central Co-operative banks (DCCBs), related to permission for place of business, change of name and scheduling. With a view to harmonising the above instructions/ guidelines and consolidating them in one place, Draft Master Direction (MD) on Business Authorization for Co-operative Banks (Directions), 2025 was issued on July 28, 2025 seeking feedback from banks and other stakeholders.