RBI vide this circular dated Augy 31, 2026 mandated NBFCs in the Middle Layer and Upper Layer to put in place an independent compliance function and appoint a Chief Compliance Officer (CCO). The Directions are effective immediately and NBFCs should reassess existing compliance policies, CCO reporting lines and monitoring systems against the consolidated framework at the earliest.

RBI has introduced a prudential framework for immovable assets acquired by NBFCs in satisfaction of borrower dues, termed Specified Non-Financial Assets (SNFAs). The Directions take effect from October 1, 2026. Legacy SNFAs outstanding as at September 30, 2026 must comply by September 30, 2027.

RBI has issued the Non-Banking Financial Companies Income Recognition, Asset Classification and Provisioning (IRACP) Third Amendment Directions, 2026 on July 16, 2026. The amendment is consequential to the Non-Banking Financial Companies Resolution of Stressed Assets Second Amendment Directions, 2026 and introduces a specific framework for income recognition in respect of Specified Non-Financial Assets (SNFA) acquired by NBFCs. The amendment comes into force from October 1, 2026.

These directions consolidate the regulatory framework governing the appointment, independence, eligibility, tenure and oversight of statutory auditors of NBFCs, including Housing Finance Companies.

The Directions have been issued under Section 45MA of the Reserve Bank of India Act, 1934 and are applicable to the statutory auditors of all NBFCs (excluding Housing Finance Companies). The revised framework strengthens the reporting responsibilities of auditors by prescribing additional reporting requirements to the Board of Directors and introducing an obligation to report significant non-compliances directly to RBI. These directions are effective from July 31, 2026.

The Directions provide a comprehensive framework for fraud prevention, early detection, investigation, reporting, governance and recovery across applicable NBFCs. The Directions apply to NBFCs in the Upper Layer, Middle Layer and Base Layer NBFCs with asset size of Rs. 500 crore and above and are effective from July 31, 2026.

The Directions establish a harmonized Risk-Based Internal Audit (RBIA) framework for eligible NBFCs and Housing Finance Companies, with the objective of strengthening governance, risk management, internal controls and audit independence. The Directions are effective from July 31, 2026 and apply to deposit-taking NBFCs and HFCs, and non-deposit taking NBFCs and HFCs having an asset size of Rs. 5,000 crore and above.

The Directions consolidate and replace the existing IT governance and cybersecurity framework applicable to NBFCs and establish a comprehensive, risk-based technology governance regime across different categories of NBFCs based on their size and regulatory layer. The framework is effective from July 31, 2026 and applies to all RBI-regulated NBFCs, Housing Finance Companies and Factoring entities, with differentiated requirements based on scale and complexity of operations.

The Directions establish a comprehensive security framework for digital payment products and services offered by credit card issuing NBFCs. The framework covers governance, application security, authentication controls, fraud management, customer protection, reconciliation mechanisms, web and mobile application security and card payment security controls. The Directions are effective from July 31, 2026. The framework seeks to strengthen payment security, minimize cyber frauds, improve customer protection and enhance resilience across web-based, mobile-based and card-based payment ecosystems.

This is a clarification on July 15, 2026 to RBI’s project-finance rules for NBFCs. It makes two amendments - related to multi-unit project and electricity transmission and evacuation projects, both effective immediately. The amendments will be relevant particularly for wholesale lending NBFCs, that too operating in ‘power sector’.

RBI has replaced the earlier “seven broad themes” approach to Board agendas of banks with a principle-based framework, supported by two detailed appendices specifying exactly which policies and matters must go to the Board, which may be delegated to Board Committees, and on what basis. The stated objective is to let Boards spend less time on routine/operational matters and more on strategy and risk governance. The Amendment Directions shall come into force from October 1, 2026. Banks should prioritise revising Board and Committee terms of reference, delegation matrices, and agenda-setting processes well ahead of this date.

RBI has issued the Reserve Bank of India (Commercial Banks – Governance) Third Amendment Directions, 2026 vide notification RBI/DOR/2026-27/206, DOR.ACC.REC.No.183/29.67.001/2026-27 dated July 30, 2026, amending the Reserve Bank of India (Commercial Banks – Governance) Directions, 2025. The amendment is consequential to the issuance of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026, which deals with Basel Pillar 3 disclosures, and has been issued in exercise of powers conferred under Section 35A of the Banking Regulation Act, 1949. These Amendment Directions shall come into force from October 01, 2026.

RBI has issued the Commercial Banks – Financial Statements: Presentation and Disclosures Eighth Amendment Directions, 2026 on July 30, 2026. The amendment aligns the Financial Statements Directions with the recently issued Basel Pillar 3 disclosure framework by removing certain disclosures that were previously required to form part of the financial statements. The amendments shall become effective from April 1, 2027.

RBI has issued the Commercial Banks – Asset Liability Management (‘ALM’) Second Amendment Directions, 2026 on July 30, 2026. The amendment is consequential to the revised Basel Pillar 3 disclosure framework and updates the cross-references relating to Liquidity Coverage Ratio (‘LCR’) and Net Stable Funding Ratio (‘NSFR’) disclosures under the ALM Directions. The amendments will come into effect from April 1, 2027. Similar amendments are introduced for Small Finance Banks.

The RBI has issued the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026, revising the Pillar 3 disclosure framework to improve alignment with Basel requirements and enhance transparency and comparability of banks’ capital and risk disclosures. Similar amendments are introduced for Small Finance Banks.

RBI has notified the Reserve Bank of India (Commercial Banks – Concurrent Audit) Directions, 2026, which came into effect from July 31, 2026. In accordance with these Directions:

IRDAI has prescribed revised formats for publishing quarterly financial results, segment information, auditors’ reports and newspaper disclosures by listed insurers and reinsurers adopting Ind AS.

IRDAI has clarified the responsibilities of the Appointed Actuary, prescribed the scope and reporting framework for the independent validation of insurers’ Ind AS implementation processes and addressed financial statements to be provided for consolidation purpose during the regulatory-forbearance period.

The amendment on July 30, 2026 refines eligibility/promoter norms, streamlines registration and capital-raising processes, tightens the prior-approval regime for transfer of shares, introduces a new pathway for amalgamating non-insurance holding businesses into insurers, and restricts use of insurance-related names. The regulations are applicable from immediate effect.

The amendment on July 30, 2026 is issued in furtherance of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, and substantially recasts the actuarial governance framework (Schedule I) while carrying out consequential changes to the investment functions (Schedule III) that follow the renumbering of Section 27 of the Insurance Act, 1938. The regulations are applicable from immediate effect.

The regulator has notified these regulations which introduce significant reforms aimed at simplifying the regulatory framework, improving governance for insurance intermediaries, enhancing transparency, and strengthening policyholder protection.

IRDAI has notified these regulations establishing a structured and transparent framework for initiating, adjudicating, and imposing penalties for regulatory violations under the Insurance Act, 1938, the IRDAI Act, 1999, and the rules, regulations, and subsidiary instructions issued thereunder. These regulations are effective from July 30, 2026 and cover following aspects:

Various insurers had put forth representations seeking relief from presentation of comparative figures in proforma financial statements (quarterly and annually) during the forbearance period. Chief General Manager (Finance and Investments) has clarified on this representation.