In a broad policy push, the Reserve Bank of India (RBI) has announced a series of regulatory and supervisory measures aimed at strengthening customer protection, expanding financial inclusion, and reducing compliance burden for financial institutions.
Reserve Bank of India said the initiatives cover customer safeguards, digital payments security, MSME credit expansion, regulatory relief for NBFCs, support for urban co-operative banks, and steps to deepen financial markets. Outlining the agenda, the central bank said, “I shall be announcing several measures aimed at enhancement. Number one: customer protection. Number two: advancing financial inclusion. Number three: promoting ease of doing business, especially for NBFCs and UCBs, and deepening financial markets.”
Stronger customer protection and fraud safeguards
To improve customer protection, the RBI said it will issue 3 draft guidelines covering mis-selling, loan recovery practices, and unauthorised electronic transactions. “For customer protection, we will issue three draft guidelines… guidelines related to mis-selling… recovery of loans and the engagement of recovery agents… and limiting customer liability in unauthorised electronic banking transactions.”
In a key relief for depositors and digital users, the RBI also proposed a compensation framework for small-value fraud. “It is also proposed to introduce a framework to compensate customers up to an amount of ₹25,000 for losses incurred in small-value fraudulent transactions.” A discussion paper on digital payment safety is also planned, including added protections for vulnerable users such as senior citizens.
Financial inclusion and MSME credit
The RBI said it has reviewed the Lead Bank Scheme, Kisan Credit Card Scheme, and Business Correspondent Model. “Draft revised guidelines will be issued, and a unified reporting portal will be launched for better management of Lead Bank Scheme data.”
For MSMEs, the collateral-free loan limit is set to double. “The limit of ₹10 lakh for collateral-free loans to MSMEs is proposed to be increased to ₹20 lakh.”
Support for real estate, UCBs, and NBFCs
Banks will be allowed to lend to REITs with safeguards. “To further promote financing to the real estate sector, it is proposed to allow banks to lend to REITs with certain prudential safeguards.”
For urban co-operative banks, the RBI announced higher limits on unsecured loans and loans to nominal members, eased housing loan norms for Tier III and IV UCBs, and a large training drive. “We shall launch Mission-SAKSHAM… to train over 1.4 lakh participants from UCBs.”
Smaller NBFCs will get relief. “NBFCs having no public funds and no customer interface, with asset size not exceeding ₹1,000 crore, are proposed to be exempted from the requirement of registration.” Branch expansion norms will also be relaxed for select NBFCs.
Deepening financial markets
The RBI said revised ECB rules will be notified soon and proposed removing the overall ₹2.5 lakh crore cap under the Voluntary Retention Route. It also plans new frameworks for derivatives on corporate bond indices and more flexibility for authorised dealer banks in foreign exchange transactions.
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