Regulating Commercial Banking

Reserve Bank has taken the following measures with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds. A. FEMA Regulation on realization and repatriation of proceeds of export of goods/ software/ services and advance payment against exports (Hyperlink) i) Extension in the time period for realisation and repatriation of full export value of goods/software/services exported from India from nine months to fifteen months from the date of export from India; ii) Increase in the time period for shipment of goods from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later. B. Reserve Bank of India (Trade Relief Measures) Directions, 2025 (Hyperlink)

The Financial Action Task Force (FATF) vide public document ‘High-Risk Jurisdictions subject to a Call for Action’ – 24 October 2025, has called on its members and other jurisdictions to refer to the statement on Democratic People’s Republic of Korea (DPRK) and Iran adopted in February 2020 which remains in effect. Further, Myanmar was added to the list of High-Risk Jurisdictions subject to a Call for Action in the October 2022 FATF plenary and FATF has called on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar. When applying enhanced due diligence measures, countries have been advised to ensure that flows of funds for humanitarian assistance, legitimate NPO activity and remittances are not disrupted. The status of Myanmar

Analysis of the performance under the Citizen’s Charter during the month of October 2025 has been carried out, and the summary thereof is given below –

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs,SFBs and PBs) ALL SCHEDULED BANKS 18-Oct-2024 03-Oct-2025* 17-Oct-2025* 18-Oct-2024 03-Oct-2025* 17-Oct-2025* LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 294002.82 319163.07 317202.13 298612.42 327465.76 324259.03** b) Borrowings from banks 130776.35 83912.67 84168.72 130806.35 83950.17 84176.79

The Reserve Bank had announced the receipt of application from VFS Capital Limited under the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the press release on January 01, 2025. It is now communicated that VFS Capital Limited has withdrawn its application.

In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated October 01, 2025, the Reserve Bank of India (RBI) has today issued the following draft Directions for public comments:

In terms of para 7(b) of the captioned Directions dated July 29, 2025, it has been stipulated that the Reserve Bank may, in consultation with the Government of India, by a notification, exempt certain Alternative Investment Funds (AIFs) from the scope of the above Directions (except for paragraph 5 – “General Requirement”), and the previous circulars dated December 19, 2023 and March 27, 2024 issued on the matter.

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs, SFBs and PBs) ALL SCHEDULED BANKS 04-Oct-2024 19-Sep-2025* 03-Oct-2025* 04-Oct-2024 19-Sep-2025* 03-Oct-2025* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 287920.78 319607.38 318430.38 292252.74 327583.51 326733.06** b) Borrowings from banks 127899.61 84796.98 84733.28 127950.17 84841.98 84761.78 c) Other demand & time liabilities 22225.29 27486.35 28435.54 22565.39 27991.42 28945.86

The Reserve Bank has constantly endeavoured to optimise its regulatory framework with a focus inter alia on reducing the regulatory burden and compliance costs, apart from timely re-evaluation of the currency of existing instructions. Pursuant to the above, the Reserve Bank has undertaken a comprehensive exercise of consolidating the regulatory instructions currently administered by the Department of Regulation, on ‘as is’ basis. The existing universe of regulatory instructions issued up to October 9, 2025 have been consolidated into 238 Master Directions, across 11 types of regulated entities on up to 30 functions / areas. Consequently, approximately 9000 circulars (including Master Circulars / Master Directions) administered by the Department of Regulation will be repealed.

In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated October 01, 2025, the Reserve Bank of India (RBI) has today issued the following draft Directions: A. Draft Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2025 The proposed Directions seek to implement one of the key elements of the global reforms implemented by the Basel Committee on Banking Supervision (BCBS), suitably tailored to the Indian context. The Directions amend the existing standardised approach fram