RBI/DGBA/2026-27/400
CO.DGBA.GBD.No.S44/31.02.007/2026-27

April 30, 2026

Reserve Bank of India [Conduct of Government Business by Agency Banks (ABs) – Payment of Agency Commission and Oversight of ABs] Directions, 2026

In terms of Sections 20, 21 and 21A of the Reserve Bank of India Act, 1934, the Reserve Bank of India (hereinafter referred to as ‘RBI’ or ‘Reserve Bank’) acts as banker to the Central and State Governments. RBI carries out the general banking business of the Central and State Governments through its own offices and through the offices of the Agency Banks appointed under Section 45 of the Reserve Bank of India Act, 1934, by mutual Agreement, having regard to public interest and convenience of banking development. The Reserve Bank, in its role as banker to the Central Government and State Governments, hereby issues the following instructions/directions, to the Agency Banks, for the seamless conduct of Government business.

Chapter I: Preliminary

A. Short Title and Commencement

1. These Directions shall be called the RBI [Conduct of Government Business by Agency Banks (ABs) – Payment of Agency Commission and Oversight of ABs] Directions, 2026.

2. These Directions shall come into effect immediately upon its issuance, unless indicated otherwise.

B. Applicability

3. These Directions shall be applicable to ABs.

C. Definitions

4. In these Directions, unless the context states otherwise, the terms herein shall bear the meanings assigned to them as below:

(a) ‘ABs’ means all Public Sector Banks (PSBs), scheduled Private Sector Banks (PVBs), scheduled Payments Banks (PBs), and scheduled Small Finance Banks (SFBs) appointed by RBI under Section 45 of the RBI, Act, 1934, by mutual agreement, to carry out Government Banking business of Central Government (CG) / State Governments (SGs).

(b) ‘Agency Commission’ means the remuneration paid by the RBI to an AB in consideration of it acting as an agent of the RBI in conduct of general banking business of the CG and the SGs at the places and in the manner specified in the agreement entered between RBI and the bank, with the exception of the functions relating to the management of the public debt.

(c) ‘Prefunded scheme’ means an arrangement where funds are paid in advance by Government to the AB to cover future liability, obligation or settlement.

(d) ‘Scrolls’ means ‘payment scroll’ or ‘receipt scroll’:

(da) ‘Payment scroll’ means a physical or electronic statement submitted by an AB that lists the payments made and claimed from the Government account at the RBI for a Ministry or Department on a given date, used for accounting and reconciliation.

(db) ‘Receipt scroll’ means a physical or electronic statement submitted by an AB that lists the receipts collected and remitted to the Government account at the RBI for a Ministry or Department on a given date, used for accounting and reconciliation.

(e) ‘Luggage file’ means an electronic form of file in ‘eXtensible Markup Language (XML)’ format reported by banks to RBI containing details of the transactions.

5. All other expressions, unless defined herein, shall have the same meaning as have been assigned to them under the applicable Acts, Rules/ Regulations made thereunder, or any Statutory modification or re-enactment thereto, or Glossary of terms published by RBI as used in common or commercial parlance, as the case may be.

Chapter II: Agency Business Arrangement - Appointment of ABs

6. All PSBs are eligible to conduct Government business as agents of RBI. With effect from February 22, 2003, RBI authorized four PVBs for conduct of Government business (including SG business). With effect from January 31, 2012, all scheduled PVBs were made eligible to conduct any CG / SG business (where RBI pays agency commission) at par with PSBs. Further, with effect from December 15, 2021, it was decided, in consultation with the Department of Financial Services (DFS), Ministry of Finance (MoF), Government of India (GoI), to also make scheduled PBs and scheduled SFBs eligible to conduct Government business. Currently, all PSBs, scheduled PVBs, scheduled PBs and scheduled SFBs are eligible to conduct Government business as agents of RBI. The list of ABs is given in Annex 1.

7. Any eligible bank which intends to handle Government business will be appointed as an AB upon execution of an agreement with RBI. The guidelines/ framework for authorising an eligible bank as an AB are as follows:

7.1 For CG / Union Territory (UT) business: The respective Civil/ Non-Civil Ministry/ Department will work out a proposal with the applicant bank and forward the same to the Office of the Controller General of Accounts (CGA) for examination. The CGA, in turn, will forward its recommendation on the proposal to the Department of Government and Bank Accounts (DGBA), Central Office (CO), RBI. RBI will examine the proposal and, if found eligible, formally appoint the applicant bank as an AB, on execution of an agreement.

7.2 For SG business: The respective department of the SG will work out a proposal with the applicant bank and forward the same to the Finance Department of the SG for examination. The Finance Department of the SG, in turn, will forward its recommendation on the proposal to the respective Regional Office (RO) of the RBI. Thereafter, RO will examine the proposal and forward the same with its comments to DGBA, which will examine the proposal and, if found eligible, formally appoint the applicant bank as an AB, on execution of an agreement.

7.3 Any approval for authorising an AB for CG / UT / SG business, will be subject to the condition that the applicant bank is placed under neither Prompt Corrective Action (PCA) framework nor moratorium at the time of making the application/signing of the agreement with RBI.

8. Accreditation of an AB for Government business:

8.1 The choice of accrediting an AB for any particular Government business rests solely with the respective CG department / UT / SG. The process for accreditation of an AB would be same as elaborated in Para 7.1 (for CG / UT business) and Para 7.2 (for SG business), respectively. Further, CG / UTs / SGs have the option to discontinue the accreditation after giving notice to the AB concerned, keeping RBI informed.

8.2 Once RBI authorises a bank for transacting any Government business, no further approval is required with regard to either mode (physical or e-mode) or area of operations. These will be decided by the Office of CGA (for CG / UT) or the Finance Department of the SG (for SGs), as applicable, keeping RBI informed.

9. Performance of the ABs, on a matrix of various Government initiatives and schemes, will be reviewed from time-to-time by the Government in consultation with RBI. Basis such review, the permission given to the bank concerned to undertake Government business could be potentially withdrawn.

10. A CG Ministry/ Department (in consultation with CGA) and a SG Department [in consultation with the respective Accountant General’s (AG) Office], respectively, may engage any bank for implementation of any of the prefunded schemes without reference to RBI.

11. All ABs shall scrupulously comply with the instructions issued by Government (Central as well as States), without waiting for any further instructions from RBI. For queries related to such instructions, ABs shall take up directly with the respective Government. Similarly, for queries related to reporting to RBI, ABs shall take up with DGBA/ Central Accounts Section (CAS), Nagpur, RBI.

Chapter III: Payment of Agency Commission for Conduct of Government Business by ABs

A. Government transactions eligible for Agency Commission

12. Transactions related to the following Government business undertaken by ABs are eligible for agency commission paid by RBI:

a. Revenue receipts on behalf of the CG / SGs

b. All payment transactions, including pension payments in respect of CG / SGs, handled by ABs, except those which are pre-funded or where compensation is paid by the Governments to the ABs

c. Any other item of work specifically advised by Reserve Bank as eligible for agency commission

13. Whenever ABs collect stamp duty through either physical mode or e-mode (challan based), they are eligible for agency commission, provided the ABs do not collect any charges from the public or receive remuneration from the SG for conduct of this work.

14. If the AB is engaged by the SG as Franking Vendor and it collects stamp duty from the public for franking the documents, it will not be eligible for agency commission, since the SG is paying commission to it. However, the AB, which collects the stamp duty paid by the Franking Vendor for credit to the Government Treasury through challan (in either physical or e-mode) for purchase of franking bar, would be eligible for agency commission since it is a regular payment of stamp duty as stated above.

B. Government transactions not eligible for Agency Commission

15. The following activities do not come under the purview of AB business and are, therefore, not eligible for agency commission:

i. ABs paying their own tax liabilities through their own branches or through authorised branches of any other AB, including State Bank of India (SBI) or offices of RBI, wherever they do not have their own authorised direct tax collection branch, should indicate the same separately in the scrolls

ii. Furnishing of Bank Guarantees (BGs) / Security Deposits, etc., through ABs by Government contractors/ suppliers, as they constitute banking transactions undertaken by banks for their customers

iii. Short-term/ long-term borrowings of SGs, raised directly from financial institutions and banks, as these transactions are not in the nature of general banking business. RBI pays the ABs separate remuneration, as agreed upon, for acting as agents for management of public debt

iv. The banking business of Autonomous/ Statutory bodies/ Municipalities/ Companies/ Corporations/ Local Bodies

v. Prefunded schemes, which may be implemented by a CG Ministry/ Department (in consultation with CGA) or a SG department

vi. Transactions related to Gold Monetisation Scheme (GMS), 2015

vii. Transactions arising out of Letter of Credit (LC) / BG opened by banks on behalf of Ministries/ Departments etc., as RBI reimburses the paid amount to the banks based on the mandate received from the Governments

viii. Any other item of work specifically advised by RBI/ CG / SG as ineligible for agency commission

16. ABs shall meticulously follow the instructions issued by RBI from time-to-time regarding transactions which are not eligible for agency commission.

C. Transactions related to various Government Schemes

17. The ABs also undertake transactions related to Small Savings Schemes (SSS). The rates of agency commission for SSS transactions are decided and borne by GoI, while they are processed and settled at CAS. As per GoI Notification F. No. 7/10/2014-NS dated October 10, 2017, all PSBs, ICICI Bank Ltd., Axis Bank Ltd., and HDFC Bank Ltd., were authorised to receive subscriptions under National Savings Time Deposit Scheme, 1981, National Savings (Monthly Income Account) Scheme, 1987, National Savings Recurring Deposit Scheme, 1981, and National Savings Certificates (VIII Issue) Scheme, 1989, in addition to the existing SSS. All authorized ABs are paid agency commission for handling transactions relating to the above SSS as per the rates applicable for SSS decided by GoI. All the transactions, i.e., receipt, payment, penalty, interest, etc., shall be directly reported to the CAS on a daily basis similar to the transactions of Public Provident Fund (PPF) Scheme, in order to maintain uniformity in reporting, reconciliation and accounting. The settlement of commission on SSS is processed and settled at CAS. The ABs shall observe the rules and regulations of the respective schemes. Non-observance of rules and regulations will attract penal action. Pecuniary liabilities, if any, arising from such non-observance shall be borne entirely by the AB.

D. Reporting of transactions by ABs to RBI

18. After the operationalisation of NEFT 24x7 and RTGS 24x7, ABs authorised to collect Goods and Services Tax (GST), Customs and Central Excise Duties through Indian Customs Electronic Data Interchange (EDI) Gateway (ICEGATE), Direct Taxes under Tax Information Network (TIN) 2.0 channel, shall upload their luggage files in RBI’s Quantum Payments Exchange (QPX)/ e-Kuber on all days except the Global Holidays. Global Holidays are January 26, August 15, October 02, all non-working Saturdays, all Sundays, and any other day declared holiday by RBI for Government transactions. These luggage files shall be uploaded in RBI’s QPX/ e-Kuber at or before 1800 hours prescribed by the Office of Principal Chief Controller of Accounts (Pr. CCA), Central Board of Indirect Taxes & Customs (CBIC) and Central Board of Direct Taxes (CBDT). No extension in cut-off time beyond 1800 hours will be allowed for uploading of these luggage files in QPX/ e-Kuber.

19. The date of monthly balance transfer for SG transactions is fifth of the succeeding month. The SG transactions (electronic as well as physical mode) of previous month reported after fourth of the succeeding month and those pertaining to earlier months should be reported for accounting to RBI through a separate statement after confirmation by the competent authorities of the SG.

20. For CG transactions (electronic as well as physical mode), or any adjustments thereof, if reported after a gap of 90 days from the date of transaction, ABs must obtain prior approval from the respective Ministry/Department and submit the same to RBI separately at the time of reporting such transactions for settlement.

21. In order to maintain uniformity in reporting, reconciliation, and accounting, ABs shall report the GMS transactions, i.e., receipt, payment, penalty, interest, commission for mobilisation, handling charges, etc., directly through the Government account maintained for the purpose at CAS, on a daily basis as in the case of the transactions of Public Provident Fund (PPF) Scheme, 2019. Further, reimbursement of payments made by banks, relating to Medium Term and Long Term Government Deposit (MLTGD), will be made by CAS. Accordingly, banks shall make payment of interest to the depositors on the respective due dates and thereafter raise claim to Government through CAS.

E. Rates of Agency Commission

22. As per agreement with AB, RBI pays agency commission at rates determined by it. The rates applicable with effect from April 01, 2025, is given in Table 1:

23. In this context, the ‘Receipts-e-mode’ transactions indicated at Sr. No. a.(ii) in Table 1 above refers to those transactions involving remittance of funds from the remitter’s bank account through internet banking/ debit card/ credit card/ UPI, etc., as well as such transactions which do not involve physical receipt of cash/ instruments at all. For example, challan generated electronically and submitted to AB, along with cash/ instrument, should be treated as transaction under physical mode.

F. Treating single challan as single transaction

24. A Challan Identification Number (CIN), generated after successful processing of a single Common Portal Identification Number (CPIN), under GST payment process, should be treated as a single transaction, even if multiple major head/ sub-major head/ minor head of accounts are credited. To illustrate, CGST, SGST, IGST and Cess, etc., paid through a single challan would constitute a single transaction. All such records clubbed under a single challan, i.e., CPIN, must be treated as a single transaction for the purpose of claiming agency commission (effective July 01, 2017).

25. Similarly, in case of transactions not covered under GST, a single challan (electronic or physical) should be treated as single transaction only and not as multiple transactions, even if the challan contains multiple major head/ sub-major head/ minor head of accounts that will get credited. Therefore, records clubbed under a single challan processed successfully must be treated as a single transaction for the purpose of claiming agency commission.

G. Procedure for claiming Agency Commission

26. ABs shall submit their claims for agency commission in the prescribed format (with GST details) to CAS in respect of CG transactions, and to the respective RO of RBI for SG transactions, respectively. However, agency commission claims related to GST receipts, direct tax collection under TIN 2.0, and of indirect taxes collection through ICEGATE reported to Mumbai RO, RBI, will be settled at Mumbai RO. Accordingly, all authorized ABs shall submit their agency commission claims pertaining to these receipt transactions to Mumbai RO. The agency commission claim for CG transactions reported to CAS will continue to be settled at CAS.

27. ABs shall furnish their claims for agency commission to RBI within 60 calendar days, from the end of the quarter in which the transactions were conducted. If banks fail to furnish claims within the stipulated period, any subsequent submissions to the RBI must be accompanied by a formal explanation, detailing the reasons for the delay.

28. All ABs shall submit agency commission claims related to Special Deposit Scheme (SDS) transactions to CAS on a quarterly basis. These claims will be settled at CAS. However, ABs shall continue to claim reimbursement of both the interest paid and the withdrawals from the respective ROs of RBI in which the mirror accounts are maintained.

29. ABs shall ensure that agency commission claims are submitted in prescribed format and are accurate.

H. Documents required to be submitted by ABs for claiming Agency Commission

30. The format for claiming agency commission by ABs is given in Annex 2. The formats for certificates to be signed by the branch officials and Chartered Accountants / Cost Accountants are given in Annex 2A and Annex 2B, respectively. These certificates are in addition to the usual certificate from Executive Director (ED) / Chief General Manager (CGM)-in-charge of Government business, to the effect that there are no pension arrears to be credited / delays in crediting regular pension / arrears thereof.

31. The agency commission claims can also be certified by Concurrent Auditor / Statutory Auditor. In addition to this, ABs shall ensure that their internal inspectors/ auditors, during the course of their inspection/ audit, verify the agency commission claims submitted by their branches and confirm their accuracy.

32. ABs shall submit the agency commission claims, including applicable GST amount, as per prescribed agency commission rates, to respective ROs/ CAS as per extant instructions of RBI. TDS on GST shall be deducted as applicable by RBI at the time of paying agency commission in accordance with the Government instructions.

I. Clarifications on claiming of Agency Commission

33. ABs would be eligible to claim agency commission for pension transactions at the rate prescribed for pension payment transactions only when the entire work related to disbursement of pension, including pension calculation, is attended to by them. If the work relating to pension calculations, etc., is attended to by the respective Government department/ Treasury, and the bank only credits the pension to the pensioner’s account maintained with it by a single debit to Government account, such transactions are categorised as ‘other than pension payment’ transactions. ABs would, therefore, be eligible for agency commission at rates prescribed for 'other than pension payment’ transactions.

34. The number of transactions eligible for agency commission should not exceed 14 per pensioner per Financial Year. This includes one monthly credit for payment of net pension and a maximum of two per year for payment of arrears on account of increase in Dearness Relief, if applicable. Cases involving payment of arrears on account of late start/ restart of pension qualifies as a single transaction for claiming of agency commission. In other words, any payment of arrears on account of late start/ restart of pension should be treated as a single credit transaction and not as separate monthly credits.

35. Agency commission is payable to an AB at the full rate provided the transactions are handled by the bank at all stages. However, wherever the work is shared between two banks the agency commission is shared between the banks in the proportion of 75%:25%. Thus, broadly, the agency commission is payable to the ABs as detailed below:

(a) At the full rate, in cases where the transactions are handled by the bank at all stages, i.e., up to the stage of dispatch of scrolls and challans/ cheques to the Pay and Accounts Offices, and treasuries/sub-treasuries

(b) At 75% of the applicable rate, where the dealing branch is required to account for the transaction by passing on the scrolls and documents to the local/ nearest branch of RBI or to any AB conducting Government business

(c) At 25% of the applicable rate, in case AB branch receives the scrolls and documents from dealing branches of other ABs and is responsible for accounting of these transactions and dispatching of the scrolls and documents to the Pay and Accounts Offices, Treasuries, etc.

36. All ABs should settle their agency transactions for both funds and agency commission directly with the respective RO of RBI instead of routing them through any other AB that acts as an aggregator in certain cases. Similarly, payments made by ABs, on behalf of SGs should be directly settled with the respective RO of RBI. Agency transaction details/ scrolls shall be forwarded directly by individual AB to the respective SG/ Treasury. This arrangement for settlement of SG funds on day-to-day basis (receipts and payments) directly with RBI is with effect from January 01, 2018.

37. In many states AB collects e-stamp/ e-court/ e-registration fees on behalf of entity engaged for the service by SG (such as Stockholding Corporation of India Ltd), and subsequently, reports these transactions to the respective RO of RBI for settlement, based on the mandate provided by Government. As stated above, transactions which do not involve physical receipt of cash/ instruments should be treated as ‘Receipts-e-mode’. ABs should not claim commission for such transactions, as applicable for physical receipts, on the basis that mandate to transfer the amount to Government was submitted physically.

J. Penal interest for wrong claims of Agency Commission

38. As per the agreement between the AB and the RBI, violation or non-compliance of instructions issued by Government and/or RBI shall attract imposition of penalty. ABs will be liable to pay penal interest at Bank Rate (as notified by RBI) plus 2% for any settled wrong agency commission claims.

Chapter IV: Oversight of Government Business in ABs

39. In terms of the agency agreement entered with ABs, the RBI carries out periodical inspection of conduct of Government business. The system of oversight of Government business includes, among others, the following:

(a) The scope of the inspection covers Government business conducted at various branches, Central Pension Processing Centres (CPPCs), as well as the Head Offices of ABs. Offices/ branches will be advised of action points, if any, arising out of inspection with a copy to its controlling office

(b) Comments in respect of action points marked as ‘Major’ should be submitted to the ROs of RBI, under which the branch/ office falls, within 30 days from the date of communication of the action points

(c) For ‘Other’ action points, necessary rectification should be ensured by the bank itself. The quality and sustenance of compliance to such ‘other’ action points should also be examined and commented upon by internal audit

(d) As a part of offsite monitoring of Government business, ABs should report details of their Government business as per the formats enclosed in Annex 3 and Annex 4. The completed statements should be e-mailed to dgbaomc@rbi.org.in, with a copy to the RO of RBI under whose jurisdiction the bank falls. A list of ABs and the respective RO of the RBI under which it falls is given in Annex 5

(e) Periodical interactions with senior executives of ABs will be held by the ROs, except SBI, for which the meetings will be held at DGBA, CO, RBI. The purpose of the meetings would be to maintain a line of communication with the AB, and gather first-hand information and feedback on Government business conducted by AB. The agenda for discussion would broadly depend on the bank’s size and nature of Government business handled. The discussions would, at a minimum, include the following:

(i) Developments in the AB’s Government business since previous inspection;

(ii) Sustenance of compliance with inspection findings;

(iii) Progress in examination of large frauds relating to Government business;

(iv) Position with regard to complaints;

(v) Pension payment related issues;

(vi) Issues raised by CG and SG departments such as delays in remittance of Government funds, penalties imposed, etc.

(vii) Issues raised by the Office of Comptroller and Auditor General (C&AG) and other Government agencies in their periodical audit/inspection reports, and

(viii) Other related issues

40. Systems and controls for conduct of Government Banking: In addition to the existing instructions, ABs shall ensure that internal/ concurrent audit at bank branches verifies whether Government business is being conducted as per rules and regulations prescribed by Government/ RBI, including examination of, among other things, agency commission claims, pension payments, etc. A checklist shall be provided to the inspecting officers/auditors, which shall, at a minimum, include the illustrative items given at Annex 6.

Chapter V - Repeal and other provisions

A. Repeal and saving

41. With the issue of these Directions, the existing Directions, instructions, and guidelines for Government Business stand repealed, as given in Annex 7. The instructions and guidelines already repealed shall continue to remain repealed.

42. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions, instructions, or guidelines shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed lists shall be deemed as governed by these Directions. Further, the repeal of these Directions, instructions, or guidelines shall not in any way prejudicially affect:

(a) any right, obligation or liability acquired, accrued, or incurred thereunder;

(b) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; and

(c) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture, or punishment may be imposed as if those Directions, instructions, or guidelines had not been repealed.

B. Application of other laws not barred

43. The provisions of these Directions shall be in addition to, and not in derogation of the provisions of any other laws, rules, regulations or Directions, for the time being in force.

C. Interpretations

44. For the purpose of giving effect to the provisions of these Directions or in order to remove any difficulties in the application or interpretation of the provisions of these Directions, the Reserve Bank̥ may, if it considers necessary, issue necessary clarifications in respect of any matter covered herein and the interpretation of any provision of these Directions given by the Reserve Bank shall be final and binding.

(Sivakumar Bose)
Chief General Manager

Annex 1

List of ABs appointed to carry out Government banking business

Annex 2A

Certificate by Agency Bank (AB)

Certified that the amount of ₹…………………….. (Rupees….................... ) claimed as agency commission has been arrived at correctly taking into account the number of transactions in respect of ‘receipts’ and ‘pension payments’ and the amount of transaction in respect of ‘payments other than pension’ as recorded in the daily scrolls of Government transactions furnished to the accounting authorities of the Central/ State Governments / RBI and other records available in the bank and that only eligible items as specified in ‘RBI Master Direction on ‘Conduct of Government Business by Agency Banks (ABs) – Payment of Agency Commission and Oversight of ABs, 2026’, as amended from time to time, have been considered while arriving at the said amount. It is further certified that agency commission claims for transactions included in the current claim has been made only once.

2. We also certify that the collections of Government receipts (both tax and non-tax) on behalf of Centre/State Governments have been duly scrolled and funds remitted to RBI and no transaction is pending for submission of scroll with the bank pertaining to the period for which agency commission is being claimed.

3. Further, we certify that the month-wise breakup of eligible pensioners’ account available with us is as per the table below, and the number of receipt transactions for which agency commission is claimed is exclusive of the transactions pertaining to own tax liabilities of the bank and the taxes deducted at source under various items of the Income Tax Act.

Signature, name and designation of the authorized signatory and seal of the bank

Annex 2B

Certificate By Chartered Accountant or Cost Accountant

Certified that we have examined the records relating to the Government transactions carried out by the branch and that the amount of ₹…………………….. (Rupees……………………) claimed as agency commission has been audited and found correct taking into account the number of transactions in respect of ‘receipts’ and ‘pension payments’, and the value of transactions in respect of ‘payments other than pension’ as recorded in the books of the bank and in the daily scrolls of Government transactions furnished to the accounting authorities of the Central/ State Governments /RBI and other records available at the branch. It is further certified that agency commission claims for transactions included in the current claim has been made only once.

2. It has also been verified that the collections of Government receipts (both tax and non-tax) on behalf of Centre/State Governments have been duly scrolled and funds remitted to RBI and no transaction is pending for submission of scroll with the bank pertaining to the period for which agency commission is being claimed.

3. It is also certified that the month-wise breakup of eligible pensioners’ account available with the bank is as per the table below, and the agency commission as aforesaid has been arrived at on the basis of only eligible transactions as per the extant instructions of RBI and that the receipt transactions are exclusive of the transactions pertaining to all tax liabilities of the bank.

Signature, Name, Registration No. and address of the Chartered Accountant or Cost Accountant

Annex 5

Agency Banks and Corresponding RBI Regional Offices

Annex 6

Checklist relating to Government Business for internal / concurrent audit

Part A: Agency commission claims

Internal inspectors/auditors shall verify the agency commission claims submitted by branches and confirm their accuracy during the course of their inspection/audit. The following shall be specifically examined during the course of internal/concurrent audit at Agency Bank (AB) branches:

1. The system in place to arrive at total number of transactions is robust and free of errors

2. Categorisation of different types of transactions (physical/electronic receipts and pension/non-pension payments) are in accordance with RBI instructions

3. Correctness of number of transactions reported in agency commission claims

4. Whether agency commission has been claimed on error scroll transactions. (Banks are not eligible for commission on error scrolls as the commission on the original transaction is being paid)

5. Whether proper records are maintained at branches as regards Government business and agency commission claims (wherever the branch has a role in making such claims)

6. Whether the entries in the registers/printouts relating to agency commission claims are properly authenticated

Part B: Pension / Government Business related issues

Internal inspections should assess branch performance in servicing pensioner customers. In this regard, the following shall be ensured:

1. A specific questionnaire covering all aspects of pension payment shall be devised for use during inspection of pension paying branches

2. Inspecting officers shall also, during inspections, call up pensioners at random and enquire about their satisfaction with pension-related services

3. A detailed checklist relating to pension payments/Government business shall be given by banks to internal auditors/inspectors in order to adhere to the recommendations of the Prabhakar Rao Committee, constituted by the GoI, relating to pension payments/Government business. These include the following:

(a) Whether there is delay in payment of pension, revision of pension, revision in dearness relief, etc

(b) Whether the branch manager conducts structured interaction with a cross section of pensioners serviced at the branch, on quarterly basis, where the number of pensioners of all Governments and departments exceeds a fixed number, say, 100 or 200

(c) Whether nominations have been obtained for all pension accounts

(d) Whether pension accounts have been converted into joint accounts wherever applicable

(e) Whether the bank branch has an effective complaint redressal mechanism and the complaints of pensioners are attended promptly and their grievances redressed expeditiously

(f) Whether the pension is credited to pensioner’s account during the last four working days of the month except for the month of March for which pension is to be credited on or after first working day of April

(g) Whether the pension paying branch obtains Life Certificate/ Non employment certificate/ Employment Certificate from the pensioners in the month of November every year

(h) Whether pension paying branches deduct income tax at source from pension payments wherever applicable

(i) Whether paper tokens in acknowledgement of cheques presented are invariably given by the tax collecting branches.

(j) Whether the challans are stamped giving bank’s BSR code and Challan Identification Number (CIN) clearly

(k) Whether the stamped challans are kept in the custody of bank’s staff and handed over to the concerned taxpayer only on production of the paper token

Annex 7

List of Circulars consolidated by the Reserve Bank in this Master Direction and are hereby repealed

RBI/DGBA/2026-27/399
CO.DGBA.GBD.No.S43/31.02.007/2026-27

April 30, 2026

Reserve Bank of India [Disbursement of Government Pension by Agency Banks (ABs)] Directions, 2026

In terms of Sections 20, 21 and 21A of the Reserve Bank of India Act, 1934, the Reserve Bank of India (hereinafter referred to as ‘RBI’ or ‘Reserve Bank’) acts as banker to the Central and State Governments. RBI carries out the general banking business of the Central and State Governments through its own offices and through the offices of the Agency Banks appointed under Section 45 of the Reserve Bank of India Act, 1934, by mutual Agreement, having regard to public interest and convenience of banking development. The Reserve Bank, in its role as banker to the Central Government and State Governments, hereby issues the following instructions/directions, to the Agency Banks, for the seamless conduct of Government business.

Chapter I – Preliminary

A. Short Title and Commencement

1. These Directions shall be called the Reserve Bank of India [Disbursement of Government Pension by Agency Banks (ABs)] Directions, 2026.

2. These Directions shall come into force with immediate effect.

B. Applicability

3. These Directions shall be applicable to the ABs which are authorized to disburse Central Government (CG) and State Government (SG) pension.

C. Definitions

4. In this Master Direction, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

(1) ‘ABs’ means all Public Sector Banks (PSBs), scheduled Private Sector Banks (PVBs), scheduled Payments Banks (PBs) and scheduled Small Finance Banks (SFBs) appointed by RBI under Section 45 of the RBI, Act, 1934, by mutual agreement, to carry out Government Banking business of CG / SGs.

(2) ‘Jeevan Pramaan’ means a biometric enabled digital service for pensioners of CG, SG or any other Government organization.

All other expressions unless defined herein shall have the same meaning as have been assigned to them under the applicable Acts, Rules / Regulations made thereunder, or any statutory modification or re-enactment thereto or as used in commercial parlance, as the case may be.

Chapter II – Implementation of Government Orders

A. Government Orders on Dearness Relief (DR), etc., available on its website

5. In order to obviate the time lag between issue of DR Orders and payment of DR to the beneficiary, and to render expeditious service to senior citizens, the procedure of forwarding related Government Orders in respect of DR, etc., through RBI to ABs had been discontinued. ABs shall, therefore, act expeditiously on the basis of copies of Government Orders provided by Government to them through post, fax, e-mail, etc., and/or by regularly accessing the Government websites.

B. Prompt implementation of Government’s Orders by ABs

6. All ABs shall scrupulously follow all the orders contained in various notifications of Government (Central as well as States) and take necessary action immediately without waiting for any further instructions from RBI.

C. Timing of pension disbursement by ABs

7. The ABs shall credit the pension amount in the accounts of the pensioners based on the orders given by respective Pension Sanctioning Authorities (PSAs).

Chapter III – Refund of excess pension payment to Government

A. Excess pension payment due to error on part of ABs

8. If the excess/wrong payment to the pensioner is due to errors committed by the AB, the entire amount thereof should be credited to the Government account in lump sum immediately. This action is independent of recovery from the pensioner. ABs shall seek guidance from respective PSAs regarding the process to be followed for recovery of excess pension paid to the pensioners, if any.

B. Excess pension payment due to error on part of Government

9. If the excess/wrong payment to the pensioner is due to errors committed by the Government, ABs shall take up the matter, with the full particulars of the cases, with respective Government department without reference to the RBI, for a quick resolution of the matter. However, this must be a time bound exercise and the Government authority’s acknowledgement to this effect must be kept on the AB’s record.

Chapter IV – Withdrawal of pension by old/ sick/ disabled/ incapacitated pensioners

A. Guidelines on withdrawal of pension

10. In order to take care of problems/ difficulties faced by sick and disabled pensioners in withdrawal of pension / family pension, ABs shall categorize such pensioners as under:

(a) Pensioner who is too ill to sign a cheque / unable to be physically present in the branch but can put his/her thumb impression on the cheque/withdrawal form.

(b) Pensioner who is not only unable to be physically present in the branch but also not able to put his/ her thumb impression on the cheque/ withdrawal form due to certain physical defect / incapacity.

11. With a view to enabling such old/ sick/ incapacitated pensioners to operate their accounts, ABs shall follow the procedure as under:

(a) Wherever thumb or toe impression of the old/ sick pensioner is obtained, it should be identified by two independent witnesses known to the bank, one of whom should be a responsible bank official

(b) Where the pensioner cannot even put his/ her thumb/ toe impression and also is unable to be physically present in the bank, a mark can be obtained on the cheque/ withdrawal form, which should be identified by two independent witnesses, one of whom should be a responsible bank official

(c) The pensioner may also be asked to indicate to the bank as to who would withdraw the amount from the bank on the basis of cheque / withdrawal form as obtained above and that person should be identified by two independent witnesses. The person who would be actually drawing the money from the bank should be asked to furnish his signature to the bank

(d) In case the pensioner cannot sign due to loss of both hands, reference may be drawn to the Supreme Court judgement reported in AIR 1950 – Supreme Court, 265, that there must be physical contact between the person who is to sign and the signature can be by means of a mark. This mark can be placed by the person in any manner. It could be the toe impression, as suggested. It can be by means of mark which anybody can put on behalf of the person who has to sign, the mark being put by an instrument which has had a physical contact with the person who has to sign.

The responsible bank official referred to in Para 11(a) and 11(b), should be from the same bank, preferably from the same branch, where the pensioner is having his/ her pension account.

B. Display of instructions in bank branches

12. The ABs’ branches should display the instructions issued in this regard on their notice board so that sick and disabled pensioners could make full use of these facilities. ABs shall strictly implement the instructions issued by RBI regarding the facilities to be provided to the sick and disabled persons, sensitise staff members in the matter, and refer to the Frequently Asked Question (FAQs) on ‘Payment of Pension to Government Pensioners’ hosted on our website (www.rbi.org.in) in case of any doubt.

Chapter V – Reimbursement of pension payments

13. Link branches of ABs shall submit reimbursement claims to Central Accounts Section (CAS), Nagpur, RBI / Government Banking Divisions (GBDs) of respective Regional Offices (ROs) for CG / SG pension payments, respectively.

14. Single Window System (SWS) was introduced to facilitate prompt settlement of reimbursement claims and reconciliation. The underlying objective is to make each pension paying bank responsible in its own right to effect settlement without the intervention of RBI offices, in the process, eliminating cause of delay in reimbursement claims.

Chapter VI – Life Certificate

A. Issuance of Acknowledgement

15. In order to alleviate the hardships faced by pensioners, ABs shall mandatorily issue duly signed acknowledgements against receipt of life certificate. ABs shall also consider updating the receipt of life certificates in their Core Banking Solution (CBS) and issue a system-generated acknowledgement which would serve the twin purpose of acknowledgement as well as real-time-updation of records. ABs shall provide digital acknowledgment in respect of digital life certificate submitted by the pensioner.

B. Jeevan Pramaan

16. ‘Jeevan Pramaan’, a digital life certificate launched by Central Pension Accounting Office (CPAO), Ministry of Finance (MoF), Government of India (GoI), based on Aadhaar Biometric Authentication, has simplified the process of submission of life certificate, facilitating accuracy and timeliness in disbursal of pensions. ABs shall refer to the orders contained in Office Memorandum dated November 14, 2014, issued by the CPAO forwarded to all ABs and SGs / Union Territories (UTs), as amended from time-to-time. Similar amendments in the pension regulations of various CG Ministries (e.g., Ministry of Railways, Department of Posts, etc.) shall also be referred. All ABs disbursing Government pension shall take necessary action to implement the scheme and issue necessary instructions to all their branches concerned and dealing staff. All ABs shall work towards creating awareness about ‘Jeevan Pramaan’ among their pensioner-customers through their branches, websites and other means. ABs shall also suitably amend the FAQs on pension payments posted on their respective websites and provide a link to the website of ‘Jeevan Pramaan.’

Chapter VII – Customer Service

A. Role of branches maintaining pension accounts

17. The AB branch that maintains pension accounts and also calculates pension should continue to be the point of referral for the pensioner.

B. Sympathetic treatment of pensioners

18. All branches maintaining pension accounts should guide and assist the pensioners in all their dealings with the AB.

19. All ABs disbursing pension shall provide considerate and sympathetic customer service to the pensioners, especially to those pensioners who are of old age.

C. Adherence to recommendations of Prabhakar Rao Committee on Customer Service

20. All ABs shall issue instructions to their dealing branches to adhere to the recommendations of the Prabhakar Rao Committee relating to pension payments. A checklist shall be provided to the inspecting officers/ auditors, which shall, at a minimum, include the illustrative items given in Annex 1. ABs shall also instruct their internal auditors/ inspectors to comment on the quality of customer service offered to the pensioners in their reports, which should be made available to RBI’s inspecting officers, as and when they visit the branches.

D. Appointment of Nodal Officers (NOs)

21. To provide hassle free service to the pensioners, there should be a forum for regular interaction and settlement of grievances. Accordingly, ABs should appoint one/two NOs at each Region/Zone for monitoring the resolution of grievances of pensioners on regular basis and the General Manager (GM) / Chief General Manager (CGM) concerned should review the position at monthly intervals.

22. At locations outside the Centralised Pension Processing Centre (CPPCs), there should be designated NOs for pension related complaints who should be (a) easily accessible to pensioners, and (b) they should hold regular meetings at different locations in their jurisdiction on the lines of Pension Adalat. Each AB should establish toll-free dedicated pension line manned by trained persons with access to the database to answer queries, note down and redress complaints.

E. Continuation of ‘either or survivor’ pension account after death of a pensioner

23. ABs shall not insist on opening of a new account for credit of family pension after death of the pensioner, if the spouse (family pensioner) opts for an existing joint account for credit of family pension.

F. Recording of Pension Payment Order (PPO) Numbers on Passbook

24. All ABs shall record the PPO numbers in all the pension passbooks of pensioners/family pensioners in order to alleviate the difficulties reported by pensioners/ family pensioners to get duplicate PPO in the instances of (a) missing original PPO, (b) transfer of pension account from one bank/ branch to another bank/ branch, and (c) commencement of family pension to spouse or dependent children after the death of the pensioner, etc.

G. Issuance of pension slips

25. Pension slips should be issued to the pensioners at (a) commencement of pension, and (b) whenever there is a change in the quantum of pension.

H. Timely credit of pension/ arrears

26. To ensure timely disbursal of revised pension and arrears, ABs should have a mechanism to immediately obtain copies of pension orders from the PPAs so that the pensioners get benefits announced by Governments in the succeeding month’s pension payment itself. ABs shall also place the arithmetic and other details about pension calculations on the web, to be made available to the pensioners through the net or at the branches at periodic intervals, as deemed necessary, and to make sufficient advertisement about such arrangements.

I. Compensation for delay in credit of pension/ arrears

27. ABs should compensate the pensioner for delay in crediting pension/ arrears thereof at a fixed interest rate of 8 per cent per annum for the period of delay after the due date of payment, if the delay is on account of error on part of the AB. Further, the compensation shall be credited to the pensioner's account automatically, without any claim from the pensioner.

Chapter VIII – Repeal Provisions

A. Repeal and Saving

28. With the issue of these Directions, the existing Directions, instructions, and guidelines relating to areas covered in these Directions as applicable to ABs and mentioned in Annex 2 stand repealed. The Directions, instructions, and guidelines repealed prior to the issuance of these Directions shall continue to remain repealed.

29. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions, instructions, or guidelines shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed lists shall be deemed as governed by these Directions. Further, the repeal of these directions, instructions, or guidelines shall not in any way prejudicially affect:

(a) any right, obligation or liability acquired, accrued, or incurred thereunder;

(b) any penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder;

(c) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.

B. Application of Other Laws not barred

30. The provisions of these Directions shall be in addition to, and not in derogation of the provisions of any other laws, rules, regulations, or directions, for the time being in force.

C. Interpretations

31. For the purpose of giving effect to the provisions of these Directions or in order to remove any difficulties in the application or interpretation of the provisions of these Directions, the RBI may, if it considers necessary, issue necessary clarifications in respect of any matter covered herein and the interpretation of any provision of these Directions given by the RBI shall be final and binding.

(Sivakumar Bose)
Chief General Manager

Annex I

Checklist relating to Government Business (pension related) for internal/ concurrent audit (Illustrative)

Internal inspections should assess branch performance in servicing pensioner customers. In this regard, the following, among others, shall be ensured:

1. A specific questionnaire covering all aspects of pension payment shall be devised for use during inspection of pension paying branches.

2. Inspecting officers shall also, during inspections, call up pensioners at random and enquire about their satisfaction with pension-related services.

3. A detailed checklist relating to pension payments/Government business shall be given by banks to internal auditors/inspectors in order to adhere to the recommendations of the Prabhakar Rao Committee, constituted by the Government of India, relating to pension payments/Government business.

These include the following:

(a) Whether there is delay in payment of pension, revision of pension, revision in dearness relief, etc.?

(b) Whether the branch manager has held structured interaction with a cross section of pensioners serviced at the branch, on quarterly basis, where the number of pensioners of all Governments and departments exceeds a fixed number, say, 100 or 200?

(c) Whether nominations have been obtained for all pension accounts and the status is being indicated on the monthly pension slips issued to the pensioners?

(d) Whether pension accounts have been converted into joint accounts wherever applicable?

(e) Whether the bank branch has an effective complaint redressal mechanism, and the complaints of pensioners are attended promptly, and their grievances redressed expeditiously?

(f) Whether the pension is credited to pensioner’s account during the last four working days of the month except for the month of March for which pension is to be credited on or after first working day of April?

(g) Whether the pension paying branch obtains Life Certificate/ Non-employment certificate/Employment Certificate from the pensioners in the month of November every year?

(h) Whether income tax is being deducted at source from pension payments wherever applicable?

(i) Whether paper tokens in acknowledgement of cheques presented are invariably given by the tax collecting branches?

(j) Whether the challans are stamped giving bank’s BSR code and Challan Identification Number (CIN) clearly?

(k) Whether the stamped challans are kept in the custody of bank’s staff and handed over to the concerned taxpayer only on production of the paper token?

Annex II

List of circulars repealed by the Master Direction

RBI/2026-27/75
DOR.STR.REC.64/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (All India Financial Institutions – Credit Risk Management) Second Amendment Directions, 2026

Please refer to Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the section 45L of the Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. Chapter II-A shall be inserted as under:

Chapter II-A – Credit Risk Evaluation

5A. Credit assessments carried out by a AIFI shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/74
DOR.STR.REC.63/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Amendment Directions, 2026

Please refer to Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 45L of the Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. In Chapter IV – Miscellaneous Instructions, part B shall be inserted as under:

B. Measures in case of declaration of calamity

33A. An AIFI at its discretion, may provide relief measures such as waiver / reduction of various fees and charges in respect of customers in the areas where a calamity has been declared, for a period not exceeding one year.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/73
DOR.STR.REC.62/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (All India Financial Institutions – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026

Please refer to Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the section 45L of the Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. Paragraph 47A and 47B shall be inserted as under:

47A. If a resolution plan is implemented in adherence to the provisions of Chapter VI-A of the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025 dated November 28, 2025, borrower accounts which are classified as ‘Standard’ may be retained as such upon implementation. Borrower accounts which may have slipped into NPA between the date of occurrence of the calamity and implementation of the resolution plan, shall be upgraded as ‘Standard’, upon implementation of the resolution plan.

Provided that after implementation of the resolution plan, the subsequent asset classification shall be governed by the criteria laid out in these Directions.

47B. Accounts which are restructured under paragraph 119I to 119Q of the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025 dated November 28, 2025, where a subsequent restructuring is necessitated under the provisions of Chapter VI-A of the afore-mentioned Directions, shall continue to be classified as ‘Standard’.

ii. The following shall be inserted in Chapter IV - Provisioning Norms

B1. Additional specific provisioning in case of resolution plan implemented under Chapter VI-A of the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025

68A. An AIFI shall make an additional specific provision of five percent of the outstanding debt in respect of borrowers, for whom a resolution plan has been implemented in terms of Chapter VI-A of the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025. The additional specific provisions shall be over and above the applicable prudential provisions subject to a ceiling of hundred per cent.

68B. For accounts where repeated restructuring is necessitated in terms of Chapter VI-A of the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025, an AIFI shall make additional specific provisioning of five per cent of the outstanding debt for each instance of restructuring made under the aforesaid Directions. This additional specific provisioning shall be over and above the applicable prudential provisions subject to a ceiling of hundred per cent.

68C. The additional specific provisions maintained in terms of paragraph 68A and 68B above may be written back upon the borrower paying at least 20% of the outstanding debt with the bank, without slipping into NPA post implementation of the restructuring, and without being subjected to another restructuring.

68D. If the outstanding debt post-restructuring is only in the form of non-fund-based facilities or facilities in the nature of cash credit / overdraft, the additional specific provisions made in terms of paragraph 68A and 68B above can be reversed after one year, post implementation of the restructuring, provided the borrower was not in default at any point of time during the period concerned. In case the borrower defaults during the above period, the conditions for reversal of additional specific provision, mentioned above, shall be tested from the date of rectification of default.

iii. In Chapter V – Income Recognition, paragraph 116A and 116B shall be inserted as under:

116A. Interest income recognition in respect of borrower accounts where resolution plan has been implemented in terms of Chapter VI-A of the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025 dated November 28, 2025, shall be on accrual basis.

116B. For accounts specified at paragraph 68B of these Directions, interest income shall be recognized on cash basis.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/63
DOR.STR.REC.52/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (Regional Rural Banks – Credit Risk Management)
Second Amendment Directions, 2026

Please refer to Reserve Bank of India (Regional Rural Banks – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. Chapter IIA shall be inserted as under:

Chapter IIA: Credit Risk Evaluation

5A. Credit assessments carried out by a bank shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/72
DOR.STR.REC.61/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (All India Financial Institutions– Resolution of Stressed Assets) Amendment Directions, 2026

Please refer to Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. Reserve Bank had announced, as part of the Statement on Developmental and Regulatory Policies dated June 08, 2023, to issue guidelines rationalising the extant prudential norms for implementation of resolution plans in respect of exposures affected by natural calamities, inter alia harmonising the regulatory instructions applicable to different Regulated Entities (REs). Subsequently, based on a comprehensive review of the existing regulatory instructions, including the scope, coverage and prudential requirements, draft Directions were issued for public comments.

3. On examination of the feedback received and in exercise of the powers conferred by the section 45L of the Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

4. These Amendment Directions modify the Directions as under:

i. Paragraph 4(3A) and 4(8A) shall be inserted as below:

(3A) ‘date of invocation’ shall mean the date on which the borrower and the AIFI agree to proceed with a resolution plan under Chapter VI-A of these Directions through a documented arrangement, other than in case of deemed invocation as specified in paragraph 119N of these Directions.

(8A) ‘natural calamity’ shall mean an event recognized under the National Disaster Response Fund (NDRF) / State Disaster Response Fund (SDRF).

ii. Paragraph 12A shall be inserted as under

12A. The board approved policy of the AIFI shall incorporate provisions for resolution as provided for under Chapter VI-A of these Directions, including the following:

(1) the objective principles for the terms of relief to be granted to various borrower / loan categories.

(2) the potential relief measures and the verifiable parameters for making such determination.

(3) the delegation matrix for deciding and implementing relief measures (if any), including for restructuring, sanction of additional finance etc., with focus on the timely implementation of relief measures.

iii. A new Chapter VI-A as under shall be inserted:

Chapter VI-A – Resolution of Accounts Impacted by Calamities

119A. The instructions contained in this Chapter shall be applicable to resolution of exposures of borrowers impacted by a natural calamity or, mutatis mutandis, exposures of borrowers impacted by external events such as riots / disturbances that result in loss to economic activity (hereinafter collectively referred to as ‘calamity’), upon the declaration of such calamity by the Central/ State Governments (in accordance with the framework placed by the concerned Government for this purpose).

119B. These instructions shall not apply to borrower accounts where relief measures have been already provided as on the effective date of these Amendment Directions, and such accounts shall continue to be guided by the existing prudential guidelines. However, any fresh resolution in such accounts subsequent to the effective date of these Amendment Directions shall be as per the guidelines contained in this Chapter.

A. Role of State Level Bankers’ Committee (SLBC) / Union Territory Level Bankers' Committee (UTLBC) / District Consultative Committee (DCC)

119C. Upon declaration of a calamity, if a larger part of the State / Union Territory (UT) has been affected, the SLBC / UTLBC convenor bank shall convene a special SLBC / UTLBC meeting within 15 days of such declaration.

119D. If the calamity has affected only a part of the State / UT, the convenor of the DCC of the affected district(s) shall convene the meeting within 15 days of such declaration, after due consultation with the SLBC / UTLBC convenor bank.

119E. In the special SLBC / UTLBC / DCC meeting, the position of the affected areas may be assessed in terms of the severity of the impact of the calamity on the economic activity and the need for any resolution measures by the REs. SLBC / UTLBC / DCC may also formulate the objective criteria for identifying impacted borrowers, and the extent of moratorium period, if any.

119F. The decisions taken in the special SLBC / UTLBC meeting(s) as mentioned at paragraph 119E above, shall be conveyed by the SLBC / UTLBC convenor bank immediately to all SLBC / UTLBC members along with the minutes of the meeting. A copy of the same shall also be forwarded by the SLBC / UTLBC convenor bank to the respective Regional Office of Reserve Bank and the Non-Banking Financial Companies (NBFCs) / Urban Co-operative Banks (UCBs) operating in the area.

119G. The decisions taken in the special DCC meeting(s) shall be conveyed by the DCC convenor bank immediately to the DCC members and the SLBC / UTLBC along with the minutes of the meeting. A copy of the same shall also be forwarded by the DCC convenor bank to the respective Regional Office of Reserve Bank and the NBFCs / UCBs operating in the area.

119H. The decisions taken in the special SLBC / UTLBC / DCC meeting(s) shall be given adequate publicity by SLBCs / UTLBC / DCCs / AIFI through various methods such as brochures, banners, advertisement in newspapers, visits by field staff, and other suitable modes, for the benefit of affected borrowers.

B. Implementation of Resolution Plan by the AIFI

119I. Where the SLBC/ UTLBC/ DCC, as the case may be, recommends extending relief measures to the impacted borrowers, AIFI may implement resolution plans in respect of impacted borrowers subject to the provisions of this Chapter.

(a) Eligibility

119J. Those borrowers shall be eligible for resolution under this Chapter whose accounts are classified as ‘Standard’, but which are not in default for more than 30 days with the AIFI in respect of any of their facilities, as on the date of occurrence of the calamity.

Explanation: In case no specific date of occurrence is ascertainable in respect of a calamity, the date of declaration of such calamity by the Central / State Governments shall be treated as the date of occurrence.

119K. Borrowers, whose loan accounts do not fulfil the required eligibility conditions for resolution under this Chapter may continue to be considered for resolution under other provisions of these Directions.

119L. The provisions of this Chapter shall not apply to the refinance portfolio of an AIFI.

(b) Invocation and Implementation

119M. Resolution under this Chapter shall be invoked no later than 45 days from the date of the declaration of calamity and shall be implemented within 135 days from the date of the declaration.

119N. An AIFI need not wait for receipt of a formal request from the borrowers and may decide to suo moto implement a resolution plan for the impacted borrowers, consequent to the recommendation of SLBC/ UTLBC/ DCC, as mentioned in paragraph 119E of these Directions. The resolution in such cases shall be deemed to have been invoked from the said date.

Provided that, in such cases of deemed invocation, a AIFI shall communicate the same to the borrower, and shall also make available the option for the borrower to opt out of the resolution plan at any point till the end of 135 days from the date of declaration of calamity.

119O. In exceptional cases, where neither deemed invocation is possible, nor is the AIFI able to complete the invocation formalities within the afore-mentioned period of 45 days, the SLBC / UTLBC / DCC convenor may approach the respective Regional Director / Officer-in-Charge of Reserve Bank for a one-time extension of 30 days for invocation. The request shall detail the reasons for not completing the exercise within the stipulated timeframe. Such requests may be considered by the Regional Director / Officer-in-Charge of Reserve Bank based on the merits of each case.

(c) Nature of Resolution Plan

119P. The resolution plan to be implemented by an AIFI, taking into account inter alia the recommendations of the SLBC / UTLBC / DCC, may include rescheduling of payments; conversion of any interest accrued or to be accrued into another credit facility, etc. based on an assessment of the viability prospects of the borrower, etc.

119Q. The resolution plan may also include proposal for sanctioning of additional finance to address the financial stress of the borrower, subject to due assessment of the viability prospects of the borrower.

C. Ancillary Measures

119R. While restructuring various types of loans in an area affected by a calamity, AIFI may also take into account the insurance proceeds, if any, receivable from insurance companies in respect of those loans. The insurance proceeds upon receipt shall be adjusted towards the ‘restructured accounts' in cases where fresh loans have been granted to the borrower. However, a AIFI may consider restructuring and sanctioning fresh loans without waiting for the actual receipt of the claim.

119S. Interest Subvention / Prompt Repayment Incentive benefits as notified by the Government from time to time shall be made available to the eligible categories of borrowers without any exception.

119T. While extending the relief measures under this Chapter, an AIFI shall ensure that the relief measures already provided / being provided by GoI / States are duly factored in.

119U. For agricultural loans, where land is taken as security, certificate issued by the Revenue Department officials, in the absence of original title record, shall be accepted for financing to farmers who have lost proof of their title such as title deed or registration certificate issued to registered share-croppers. In the areas covered by the Sixth Schedule of the Constitution, whereby the land is owned by the community, certificate issued by community authorities shall be accepted.

D. Reporting Requirements

119V. The SLBC /UTLBC convenor bank shall upload the notification(s) issued by State / District Authorities on declaration of a calamity for which relief measures were implemented by SLBC / UTLBC / DCC/ AIFI, on the CIMS portal, within 15 days of the special SLBC / UTLBC / DCC convened for extending relief measures.

119W. AIFI shall upload the data on relief measures on a half-yearly basis within 30 days from the end of the half-year (September 30th and March 31st of every year) on the CIMS portal.

119X. In case no relief measures are extended, a ‘NIL’ statement shall be uploaded by the AIFI.

5. Consequential amendments have also been made vide following:

i. Reserve Bank of India (All India Financial Institutions – Credit Risk Management) Second Amendment Directions, 2026 dated April 29, 2026.

ii. Reserve Bank of India (All India Financial Institutions – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026 dated April 29, 2026.

iii. Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Amendment Directions, 2026 dated April 29, 2026.

6. The above amendments shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/67
DOR.STR.REC.56/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (Rural Cooperative Banks – Credit Risk Management) Second Amendment Directions, 2026

Please refer to Reserve Bank of India (Rural Cooperative Banks – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 20, 21 and 35A read with the section 56 of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. Chapter IIA shall be inserted as under:

Chapter IIA: Credit Risk Evaluation

5A. Credit assessments carried out by a bank shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/71
DOR.STR.REC.60/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions, 2026

Please refer to Reserve Bank of India (Non-Banking Financial Companies – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934; sections 30A and 32 of the National Housing Bank Act, 1987 and section 3 read with section 31A and section 6 of the Factoring Regulation Act, 2011, and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. Paragraph 8A shall be inserted as under:

8A. Credit assessments carried out by a NBFC shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager

RBI/2026-27/62
DOR.STR.REC.51/21-04-048/2026-27

April 29, 2026

Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct)
Amendment Directions, 2026

Please refer to Reserve Bank of India (Regional Banks – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.

2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

i. In Chapter V – Financial Inclusion and Accessibility, part D shall be inserted as under:

D. Banking services in case of declaration of calamity

166A. A bank may operate their calamity affected branches from temporary premises under advice to the concerned Regional Office of RBI. For continuing the temporary premise beyond 30 days, banks may obtain specific approval from the respective Regional Office of RBI. A bank shall also make arrangements to render banking services in the affected areas by setting up satellite offices, extension counters or mobile banking facilities etc. under intimation to Reserve Bank.

166B. A bank shall take immediate action for restoration of ATM services at the earliest. During the period, it shall provide alternative arrangements to address the immediate cash requirements of the affected areas.

166C. Persons displaced or adversely affected by a calamity may not have access to their identification and personal records. In such cases, small accounts as stipulated in the Reserve Bank of India (Regional Rural Banks – Know Your Customer) Directions, 2025, may be opened by banks.

166D. A bank at its discretion, may provide relief measures such as waiver / reduction of various fees and charges in respect of customers in the areas where a calamity has been declared, for a period not exceeding one year.

4. The above amendment shall come into force with effect from July 1, 2026.

(Vaibhav Chaturvedi)
Chief General Manager