The Reserve Bank of India notified the Reserve Bank of India (Small Finance Banks - Miscellaneous) Amendment Directions, 2026 on 19 October 2026. It removes Section C of Chapter IV, headed 'Limits for Non-Option Derivative Contracts', corresponding to paragraph 37 of the Reserve Bank of India (Small Finance Banks - Miscellaneous) Directions, 2025.
The amendment was issued under section 35A of the Banking Regulation Act, 1949 and other enabling legal provisions. According to the notification, the amended instructions came into effect immediately on issuance.
Small finance banks should therefore review policies, compliance manuals and control references that rely on this specific deleted provision. The deletion is confined to the stated paragraph; the notification should not be read as dispensing with other applicable derivative transaction or risk-management requirements.