Reserve Bank of India (Small Finance Banks – Credit Facilities) Amendment Directions, 2026

RBI/2025-26/216
DOR.CRE.REC.407/07-01-002/2025-26

February 13, 2026
 

Reserve Bank of India (Small Finance Banks – Credit Facilities) Amendment Directions, 2026
 

Please refer to Reserve Bank of India (Small Finance Banks – Credit Facilities) Directions, 2025 (hereinafter referred to as 'the Directions').
 

2. On a review, 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. The Amendment Directions modify the Directions as under:
 

3(1) In paragraph 4(1) of 'Chapter I - Preliminary' of the Directions, the following modifications shall be effected:
 

3(1) (i) Sub-paragraph (vii) shall be substituted with the following:
 

(vii) "Collateral security" or "Collateral" means an asset on which a security charge is created in favour of the lender for securing a credit facility.
 

3(1) (ii) The following sub-paragraphs shall be inserted:
 

(va) "Capital Market Intermediaries (CMIs)" shall mean regulated entities undertaking trade execution and market infrastructure services in capital markets, including broking, clearing, custody, market making or other incidental services.
 

Provided that CMIs shall not include Standalone Primary Dealers and Qualified Central Counterparty (QCCPs).
 

(viiia) "Control" shall have the same meaning as defined in Section 2(27) of the Companies Act, 2013.
 

(xivb) "Eligible Securities" shall include the following securities:
 

(a) Listed Group-1 equity shares and preference shares;
 

Explanation: Group 1 securities as under instructions issued by Securities and Exchange Board of India (SEBI)
 

(b) Government Securities, including Treasury Bills and Sovereign Gold Bonds;
 

(c) Listed Debt Securities, including Convertible Debt Securities, rated BBB or higher;
 

Explanation: Debt securities as defined under Section 2(1)(k) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 dated August 9, 2021, as updated from time to time.
 

(d) Units of Mutual Fund Schemes which are listed or where repurchase/redemption facility is available for such units through the Asset Management Company, with underlying investments in equity, equity related instruments or debt instruments.
 

(e) Units of Exchange Traded Funds (excluding commodity ETFs)
 

(f) Units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs);

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