{"id":89836,"date":"2025-12-23T12:59:05","date_gmt":"2025-12-23T07:29:05","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=89836"},"modified":"2025-12-23T16:48:36","modified_gmt":"2025-12-23T11:18:36","slug":"rbi-financial-services-amendment-directions","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/rbi-financial-services-amendment-directions\/","title":{"rendered":"RBI Financial Services Amendment Directions 2025: Complete Guide for Banks, NBFCs &amp; NOFHCs\u00a0"},"content":{"rendered":"<p>The Reserve Bank of India (RBI) formulates regulations for the Financial Services <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Amendment<\/a> Directions 2025.&nbsp;It&rsquo;s&nbsp;primarily for the safe and orderly operation of domestic banks and financial institutions. Issued on December 5, 2025, this update promotes clarity, risk&nbsp;segregation&nbsp;and clear guidelines on investment limits in various financial services.&nbsp;<\/p>\n\n\n\n<p>The Reserve Bank released the draft guidelines in October 2024 and&nbsp;finalized&nbsp;the&nbsp;final version&nbsp;after collecting feedback from various stakeholders. These revised guidelines help in protecting core banking activities and increasing control over the activities of group-based institutions.&nbsp;<\/p>\n\n\n\n<p>RBI updates the financial services rules to strengthen the setting of business transaction limits, risk management, and the regulatory framework at the individual and group levels. The guidelines outline governance, risk boundaries, and&nbsp;maintaining&nbsp;regulatory discipline in the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a>. All the&nbsp;<a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a> license&nbsp;seekers and fintech enthusiasts must have a fair idea of the RBI Financial Services Amendment Directions 2025.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5&nbsp;Revised Guidelines&nbsp;under&nbsp;Financial Services Amendment Directions 2025&nbsp;<\/h2>\n\n\n\n<p>The revised guidelines&nbsp;under&nbsp;Financial Services Amendment Directions 2025&nbsp;cover five types of financial service providers:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Commercial Banks&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Small Finance Banks&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Payment Banks&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>NBFCs&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Non-Operative Financial Holding Companies (NOFHC)&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The new&nbsp;Financial Services Amendment Directions 2025&nbsp;have been laid down for each category&nbsp;as mentioned above. The guidelines clarify which activities a bank or group entity can undertake on a departmental <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>. These activities should be undertaken only through subsidiaries or joint ventures.&nbsp;<\/p>\n\n\n\n<p>Financial risk has been controlled by setting investment limits. In addition, the conditions for participation in AIF, ARC, REIT\/InvIT&nbsp;are now&nbsp;clarified. The&nbsp;objectives&nbsp;ensure a clear distinction between direct banking activities and subsidiary or group activities.&nbsp;<\/p>\n\n\n\n<p>New business lines&nbsp;commence&nbsp;as per the board-approved policy of stakeholders, and it&nbsp;maintains&nbsp;transparency through regular reporting and compliance processes. As a result, regulation, risk management, and customer protection become strong together. It will keep the country&rsquo;s financial system stable. Business dreamers eyeing a business launch and growth in the fintech and lending space must know about the frameworks before opting for&nbsp;<a href=\"https:\/\/enterslice.com\/nbfc-registration\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>NBFC registration<\/strong><\/a>&nbsp;in India.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Detailed Framework for Each Category of Regulated Entity&nbsp;<\/h2>\n\n\n\n<p>The 2025 RBI Financial Services Amendment&nbsp;outlines&nbsp;a structured,&nbsp;entity-based&nbsp;framework to&nbsp;standardize&nbsp;how different financial institutions conduct,&nbsp;manage&nbsp;and govern their financial services activities.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Commercial Banks Amendment Directions&nbsp;<\/h3>\n\n\n\n<p>The revised rules&nbsp;under&nbsp;Financial Services Amendment Directions 2025&nbsp;introduce a&nbsp;strict, more uniform regime for commercial banks, reshaping how they deliver financial services, manage group level&nbsp;activities&nbsp;and engage in regulated business lines.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Scope and Applicability&nbsp;<\/h4>\n\n\n\n<p>The&nbsp;revised&nbsp;Commercial bank amendment&nbsp;directions&nbsp;were&nbsp;implemented&nbsp;w.e.f. December&nbsp;5,&nbsp;2025,&nbsp;as&nbsp;a&nbsp;part of the Master Direction of November 2025.&nbsp;Banks categorized under&nbsp;NBFCs and HFCs&nbsp;will now apply&nbsp;the same&nbsp;rules (Para 18(4)). However, institutions under NOFHC will not be considered equivalent&nbsp;to such&nbsp;institutions.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Updated Definitions and Clarifications&nbsp;<\/h4>\n\n\n\n<p><strong>&ldquo;Agency Business<\/strong>&rdquo; has been newly&nbsp;introduced. Now, the bank will not risk selling financial products to third&nbsp;parties but just&nbsp;provide services.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In &ldquo;<strong>Referral Service<\/strong>&rdquo;,&nbsp;the bank will only provide product information to the customer; the bank&rsquo;s brand or platform will not&nbsp;participate&nbsp;in any operation.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The definition of &ldquo;<strong>Group Entity<\/strong>&rdquo; is now as per IND-AS.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Business Undertaking Structure&nbsp;<\/h4>\n\n\n\n<p>Practical&nbsp;banking,&nbsp;such as loan disbursement and&nbsp;deposits, are&nbsp;conducted only through banks. However, loans&nbsp;are approved&nbsp;through NBFCs\/HFCs and&nbsp;operate&nbsp;as per UL-NBFC norms.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Insurance, Mutual Fund, AMC, Brokerage, PMS,&nbsp;Pension&nbsp;or Investment Advisory&nbsp;are&nbsp;mandatory to be done only through subsidiaries or group companies. A business&nbsp;must&nbsp;be ideally&nbsp;conducted&nbsp;through only one entity&nbsp;in&nbsp;the group.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Regulatory Approvals and Timing Control&nbsp;<\/h4>\n\n\n\n<p>RBI approval will be required first to start any new type of activity. Banks that do not&nbsp;comply with&nbsp;the guidelines will not be able to enter the new segment after April 1, 2026.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Investment &amp; Exposure Restrictions&nbsp;<\/h4>\n\n\n\n<p>Total investment in a single entity could be 10% but not exceed&nbsp;20%.&nbsp;Exemptions&nbsp;will be available for 20%-30% investment, but a time-bound plan&nbsp;needs to be&nbsp;submitted. Investment in Category-III AIF is&nbsp;strictly prohibited. Investment in Category I\/II will be kept within specified limits. Investment in REIT\/InvIT&nbsp;will not be allowed to exceed 10% of the unit capital. Apart from this, exposures will have to be reported to ICAAP, and if any limit is breached, it is mandatory to report to PRAVAAH within 15 days.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Small Finance Banks Amendment Directions<\/h3>\n\n\n\n<p>The updated directions&nbsp;standardize the compliance and operating framework for small finance banks, aligning them with stricter risk, governance, and business-undertaking standards.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Scope, Legal Authority &amp; Effective Date&nbsp;<\/h4>\n\n\n\n<p>The&nbsp;scope of&nbsp;financial services&nbsp;for&nbsp;small finance banks&nbsp;has&nbsp;been revised as per the Banking Regulation Act, 1949.&nbsp;This was revised&nbsp;on&nbsp;5 December 2025&nbsp;that led to a new framework for the general instructions.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Revised Definitions&nbsp;<\/h4>\n\n\n\n<p>Now the meaning of the term &ldquo;A<strong>gency business<\/strong>&rdquo; has been explained more clearly. The bank&nbsp;plays&nbsp;a supporting role in the marketing and sale of third-party financial products and&nbsp;does&nbsp;not take any risk. In &ldquo;<strong>Referral services<\/strong>&ldquo;, the bank will only provide information to the customer; the name of the bank cannot be used in the product documents, and the platform of the bank will not be linked to the product activities.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Business Undertaking Rules&nbsp;<\/h4>\n\n\n\n<p>Banking services are provided according to the specific department.&nbsp;Banks formulate policies based on risk&nbsp;assessment<strong>&nbsp;<\/strong>and get RBI approved&nbsp;to&nbsp;commence&nbsp;a new business.&nbsp;A separate subsidiary&nbsp;can&rsquo;t&nbsp;be formed.&nbsp;Mutual funds, insurance, pension, portfolio&nbsp;management,&nbsp;or brokerage services can be provided only through group companies.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Investment Limits&nbsp;<\/h4>\n\n\n\n<p>The&nbsp;maximum&nbsp;limit&nbsp;is 10%&nbsp;for individual investment of a bank, which&nbsp;can&rsquo;t&nbsp;exceed&nbsp;20%. However, in case of need to save an institution or in case of debt restructuring, the investment can&nbsp;exceed&nbsp;30%. Normally, approval is not&nbsp;required&nbsp;for&nbsp;investments&nbsp;below 20%, but RBI approval is&nbsp;required&nbsp;for investment of 20% or more, and a plan for the sale of shares will also have to be&nbsp;submitted&nbsp;later.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">AIF\/REIT\/InvIT&nbsp;Norms&nbsp;<\/h4>\n\n\n\n<p>Investment in Category-III AIF is completely prohibited. Contributions&nbsp;limit is a maximum of 10%&nbsp;in Category I or II. It&nbsp;ensures&nbsp;that the bank does not bypass the regulatory limits through indirect investment. Investment in REIT or&nbsp;InvIT&nbsp;will be within the limit of 20% of the net worth of the shop, and investment in a single scheme cannot exceed 10%.&nbsp;The bank will now be able to act as a professional clearing member in the equity derivatives segment.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Payment Banks as Commercial Banks<\/h3>\n\n\n\n<p>As per the revised definition, Agency Business&nbsp;facilitates&nbsp;the sale of approved financial products,&nbsp;such as insurance, mutual&nbsp;funds,&nbsp;and pension products. This includes providing sales-related information, promotion, handling customer complaints, and post-sales support.&nbsp;<\/p>\n\n\n\n<p>The role of the bank in the referral system&nbsp;is&nbsp;strictly&nbsp;limited&nbsp;to providing information.&nbsp;The bank&nbsp;will not actively be involved&nbsp;in any process&nbsp;of sales,&nbsp;application,&nbsp;or&nbsp;beyond.&nbsp;The bank&rsquo;s&nbsp;brand cannot be used&nbsp;by the external POSP in their marketing or sales process.&nbsp;The&nbsp;bank&rsquo;s&nbsp;name can be added to the&nbsp;documents for identification purposes. The customer will&nbsp;be directed to the&nbsp;external TPPSP&nbsp;that ensures a clear separation between the bank&rsquo;s digital interface and third-party sales platform.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Here, the framework for agency-based sales and referral-based introductions has been clearly separated. The bank will be able to enter into agreements only with regulated financial institutions and will have to&nbsp;maintain&nbsp;consistency with the Master Directions published in November 2025.&nbsp;<\/p>\n\n\n\n<p>Most importantly, the bank will not take any financial risks.&nbsp;This will allow payment banks to stick to their deposit-based model, and customers will have the opportunity to use third-party services safely.&nbsp;<strong><a href=\"https:\/\/enterslice.com\/payment-bank-license\" target=\"_blank\" rel=\"noreferrer noopener\">Payment bank license<\/a>&nbsp;<\/strong>holders should be aware of this<strong>.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Non-Banking Financial Companies&nbsp;<\/h3>\n\n\n\n<p>NBFCs are part of a group of designated commercial banks,&nbsp;following&nbsp;the rules applicable to banks.&nbsp;When the same type of financial activity is&nbsp;undertaken&nbsp;by both the NBFC and its parent bank, the same rules have to be followed.&nbsp;This&nbsp;maintains&nbsp;the same type of risk control and ethical standards in the same business.&nbsp;It is mandatory to follow the Commercial Banks &ndash; Undertaking of Financial Services Directions, 2025. This&nbsp;ensures transparency in&nbsp;monitoring&nbsp;the activities of NBFCs belonging to the group.&nbsp;<\/p>\n\n\n\n<p>This change will require&nbsp;harmonization&nbsp;of risk management, capital allocation, reporting&nbsp;processes,&nbsp;and internal policies to bank-level norms.&nbsp;It&nbsp;prevents&nbsp;regulatory arbitrage,&nbsp;enhances&nbsp;customer&nbsp;protection,&nbsp;and&nbsp;maintains&nbsp;stability at the group level. The&nbsp;framework helps&nbsp;NBFC&ndash;bank groups&nbsp;operate&nbsp;on a level playing field.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Non-Operative Financial Holding Company<\/h3>\n\n\n\n<p>It has been more clearly defined where the activities will be within the banking group with the implementation of the revised guidelines of 2025.&nbsp;&nbsp;<\/p>\n\n\n\n<p>According to the new framework,&nbsp;the new policy activities&nbsp;permitted&nbsp;for banks as per Section 6(1) of the Banking Act, 1949,&nbsp;are within the banking entity. Similar services will not be&nbsp;applied&nbsp;across different institutions of the group but will be&nbsp;operated&nbsp;under one institution, thus ensuring clear risk control.&nbsp;<\/p>\n\n\n\n<p>Specialized&nbsp;activities such as&nbsp;<a href=\"https:\/\/enterslice.com\/registration-of-mutual-fund-with-sebi-india\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>mutual fund business<\/strong><\/a>, insurance services, pension fund management,&nbsp;<a href=\"https:\/\/enterslice.com\/investment-advisory-for-businesses\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>investment advisory<\/strong><\/a>,&nbsp;<a href=\"https:\/\/enterslice.com\/portfolio-manager-registration\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>portfolio management<\/strong><\/a>&nbsp;and&nbsp;broking&nbsp;services&nbsp;are&nbsp;carried out through&nbsp;Subsidiaries, Joint&nbsp;ventures&nbsp;or associate institutions. In this, compliance,&nbsp;licensing,&nbsp;and risk management are more specific.&nbsp;<\/p>\n\n\n\n<p>In general,&nbsp;prior approval of the RBI&nbsp;is not required to&nbsp;start such a business, but the RBI&nbsp;has to&nbsp;be informed within&nbsp;15 days&nbsp;of the board&rsquo;s decision. However, prior approval is mandatory for starting any new or different type of business.&nbsp;<\/p>\n\n\n\n<p>This prevents entities from investing or performing activities&nbsp;strictly prohibited&nbsp;by&nbsp;banks.&nbsp;So, integrated control, customer&nbsp;protection,&nbsp;and ethical financial discipline are&nbsp;maintained&nbsp;within the group.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits and Expected Industry-wide Outcomes&nbsp;<\/h2>\n\n\n\n<p>The new structure&nbsp;under&nbsp;Financial Services Amendment Directions 2025&nbsp;will bring improvements&nbsp;to&nbsp;various levels in the banking group.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Less conflicts of interest&nbsp;&nbsp;<\/h3>\n\n\n\n<p>If the same type of financial service is&nbsp;operated&nbsp;in different institutions, there will be confusion in decision-making and risk management. The new structure will reduce risks and clarify the role of each institution.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Strengthen&nbsp;Customer&nbsp;Protection&nbsp;<\/h3>\n\n\n\n<p>The activities of the bank and the related&nbsp;group of&nbsp;companies will now&nbsp;operate&nbsp;under separate licenses and standards. So, service quality and the ability to&nbsp;determine&nbsp;risk responsibilities will increase.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Investment reporting&nbsp;&amp;&nbsp;Easy&nbsp;classification&nbsp;&nbsp;<\/h3>\n\n\n\n<p>Capital investments, AIF investments, group exposures, etc., will now be reported according to a single principle. This will also make supervisory intervention easier.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stable Capital&nbsp;Structure of the group&nbsp;<\/h3>\n\n\n\n<p>Having a specific investment limit in an institution will reduce unwanted risk-taking. This will strengthen the return distribution and balance sheet&nbsp;in the long run.&nbsp;This new framework will create discipline within the entire financial group and bring more stability&nbsp;to&nbsp;asset management.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>The 2025 RBI Financial Services Amendment&nbsp;policy change is a significant step in the management of activities and risks within the banking group.&nbsp;It&nbsp;promotes&nbsp;transparency&nbsp;for&nbsp;the bank&nbsp;and group&nbsp;entities&rsquo; activities&nbsp;in&nbsp;discipline and security for long-term.&nbsp;The&nbsp;Financial Services Amendment Directions 2025&nbsp;will bring positive changes across the industry in terms of protecting customer interests, transparency of&nbsp;transactions,&nbsp;and strategic business allocation.&nbsp;<\/p>\n\n\n\n<p>Banks and group NBFCs, HFCs or NOFHCs will now have to properly complete the compliance, document-updating&nbsp;and approval process as per the policy. Here,&nbsp;Enterslice&nbsp;provides policy clarification, RBI licensing&nbsp;assistance, compliance&nbsp;documentation,&nbsp;and advisory support for various banking-regulated entities. If your&nbsp;organization&nbsp;wants to adapt to this change,&nbsp;<a href=\"https:\/\/enterslice.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Enterslice<\/strong><\/a>&nbsp;expert team is ready to help.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">All You Need To About RBI Financial Services Amendment<\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3>What is the main&nbsp;objective&nbsp;of the RBI's 2025 revised guidelines?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">The main&nbsp;objective&nbsp;of this revision is to clarify the distribution of activities within the banking group and strengthen risk management. A clear framework has been created&nbsp;regarding&nbsp;the activities and services that will be carried out under the bank and handled by the group company. This will reduce regulatory arbitrage, increase customer&nbsp;protection&nbsp;and create transparency in the investment,&nbsp;approval&nbsp;and reporting system.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What impact will this new framework have on the activities of commercial banks?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Activities&nbsp;directly related&nbsp;to the bank will now have to be handled within the bank. Non-bank activities will be handled through group companies. This will increase the focus on the bank's core financial services, and liquidity, capital planning, and risk provisioning will be more&nbsp;organized. At the same time, investment exposure limits will be clearly defined.&nbsp;<br>&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>Why are separate guidelines for Payments Banks?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Since the activities of payment banks are limited, they&nbsp;require&nbsp;different controls. They cannot provide loans, so they need separate policies in the &#8203;&#8203;group structure, investment&nbsp;limits&nbsp;and risk containment. The revised guidelines force Payment Banks to remain within their approved services that ensure the safety of customer funds and institutional status.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What has changed in the investment framework of NBFCs?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">NBFCs are part of banking groups and will now follow the same investment,&nbsp;reporting&nbsp;and approval system as banks. If both banks and NBFCs do the same activity, the rules of the respective banks will be applicable. This will make it easier to&nbsp;determine&nbsp;institution-wide risk and supervise at the&nbsp;consolidated&nbsp;level.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What is the importance of stakeholder comments?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">After the publication of the draft, various&nbsp;organizations&nbsp;provided feedback. After reviewing the feedback, RBI has made the revised framework more realistic. This implements the policy in practice, reflects the business needs of the&nbsp;industry&nbsp;and&nbsp;maintains&nbsp;transparency in the financial system. Stakeholder feedback also increases the acceptability of the policy.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>How will Small Finance Banks benefit?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Their activities will now run within a clearer framework. There will be scope to manage non-core services through group strategies. The new investment limits and approval process will reduce risk, bring transparency to the expansion of&nbsp;activities&nbsp;and&nbsp;facilitate&nbsp;the development of sustainable service plans for small borrowers.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What will be the responsibility of the board-level committee?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">The board will have to formulate policies on risk allocation, capital exposure, investment of group entities, and transfer of activities. The board will have to approve the decision, which activities will remain under the bank and go to the group entity. In addition, the responsibility of&nbsp;maintaining&nbsp;reporting timelines will also have to be&nbsp;monitored&nbsp;at the board level.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What is the&nbsp;time frame&nbsp;for implementing the revised instructions?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">The revised framework will be effective from December 5, 2025. However, institutions will be allowed to transform in a phased manner to streamline group companies, investment&nbsp;policies&nbsp;and management structures. RBI is expected to clarify the instructions in phases and conduct periodic reviews.&nbsp;<br>&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What kind of changes will be seen at the customer level?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">There will be transparency in the operating service. The core banking services will be available through the bank itself, and investment, insurance or advisory services will be provided through separate group entities. So, accountability, service standards, dispute&nbsp;resolution,&nbsp;and complaint redressal will be more direct and effective.&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>How can an institution or regulated entity get professional compliance&nbsp;assistance?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Various operational,&nbsp;legal,&nbsp;and regulatory issues will have to be updated to implement the new framework. It is&nbsp;advantageous&nbsp;to take professional&nbsp;assistance&nbsp;in policy preparation, RBI approval, committee formation,&nbsp;documentation,&nbsp;and reporting.&nbsp;Enterslice&nbsp;provides&nbsp;structural advice, RBI filing, licensing&nbsp;assistance,&nbsp;and compliance monitoring services in this regard.&nbsp;<\/p><\/li><\/ol><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) formulates regulations for the Financial Services <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\" href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Amendment<\/a> Directions 2025.&nbsp;It&rsquo;s&nbsp;primarily for the safe and orderly operation of domestic banks and financial institutions. Issued on December 5, 2025, this update promotes clarity, risk&nbsp;segregation&nbsp;and clear guidelines on investment limits in various financial services.&nbsp; The Reserve Bank released the draft guidelines in October [&hellip;]<\/p>\n","protected":false},"author":102,"featured_media":89837,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2620,3170],"tags":[12346,3284],"acf":{"service_id":"994"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI Financial Services Amendment Directions 2025 Guide<\/title>\n<meta name=\"description\" content=\"Complete guide on RBI Financial Services Amendment Directions 2025 for Banks, NBFCs &amp; NOFHCs. Understand compliance, updates, and key implications.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/rbi-financial-services-amendment-directions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RBI Financial Services Amendment Directions 2025 Guide\" \/>\n<meta property=\"og:description\" content=\"Complete guide on RBI Financial Services Amendment Directions 2025 for Banks, NBFCs &amp; NOFHCs. Understand compliance, updates, and key implications.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/rbi-financial-services-amendment-directions\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-23T07:29:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-23T11:18:36+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2025\/12\/RBI-Financial-Services-Amendment-Directions-2025-Complete-Guide-for-Banks-NBFCs-NOFHCs.webp\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Abhishek Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2024\/04\/abhishek.kumar_.png","authorDescription":"With 17+ years of experience in consulting, technology, regulatory affairs, and sustainability, Abhishek Kumar, a partner at Enterslice, helps business enthusiasts start their entrepreneurial journey. He also supports the vision of green entrepreneurs by utilizing his knowledge and experience. His write-ups showcase his versatility and intense thought process.","postViews":320,"readingTime":8,"nextPost":{"id":89844,"slug":"how-to-register-company-ajman-free-zone-foreigner"},"prevPost":{"id":89830,"slug":"kyc-checklist-in-oman-documents-pitfalls"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2025\/12\/RBI-Financial-Services-Amendment-Directions-2025-Complete-Guide-for-Banks-NBFCs-NOFHCs.webp","postTerms":"RBI Notification","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/89836"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=89836"}],"version-history":[{"count":5,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/89836\/revisions"}],"predecessor-version":[{"id":89843,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/89836\/revisions\/89843"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/89837"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=89836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=89836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=89836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}