The Reserve Bank of India issued the Reserve Bank of India (Small Finance Banks - Miscellaneous) Amendment Directions, 2026 on 19 October 2026, under circular RBI/2026-27/295, DOR.MRG.REC.No.249/00-00-020/2026-27.
The directions delete Section C, titled 'Limits for Non-Option Derivative Contracts', of Chapter IV (paragraph 37) from the Reserve Bank of India (Small Finance Banks - Miscellaneous) Directions, 2025. The change was made under section 35A of the Banking Regulation Act, 1949, and is effective immediately upon issuance.
The amendment is specific to the identified provision applicable to small finance banks. It should not be interpreted as removing every restriction on derivative transactions or overriding other RBI directions. Affected banks should update their regulatory compliance inventories and internal policy references, and review other applicable derivatives, risk-management and prudential instructions before changing dealing limits or approvals.
This is a notified and operative regulatory amendment, not a consultation or proposal.