Press Release: 2025-2026/2055, Dated 06.02.2026
The Reserve Bank of India (RBI) has issued a Statement on Developmental and Regulatory Policies, setting out a series of key policy measures aimed at strengthening consumer protection, improving credit access, and further developing India’s financial markets.
1. Proposed Instructions on Advertising and Sale of Financial Products
The RBI has proposed to issue detailed instructions governing the advertising, marketing, and sale of financial products by regulated entities.
These measures are intended to:
- Ensure fair and transparent communication with customers
- Prevent mis-selling and misleading claims
- Strengthen consumer confidence in the financial system
2. Review of Customer Liability in Unauthorised Electronic Transactions
The RBI has decided to review the existing framework on limiting customer liability in cases of unauthorised electronic banking transactions.
The review aims to:
- Assess the adequacy of current consumer protection safeguards
- Address evolving risks in digital payment systems
- Strengthen clarity and consistency in liability norms
3. Enhancement of Collateral-Free Loan Limit for MSEs
To improve access to formal credit, the RBI has announced an enhancement of the collateral-free loan limit for Micro and Small Enterprises (MSEs):
- Existing limit – ₹10 lakh
- Revised limit – ₹20 lakh
This measure is expected to:
- Support small business growth
- Encourage bank lending to MSEs
- Reduce dependence on informal sources of credit
4. Development of Credit Derivatives and Corporate Bond Market
The RBI has also decided to issue, shortly, a regulatory framework for public consultation to enable:
- Introduction of derivatives on credit indices, and
- Total Return Swaps (TRS) on corporate bonds
These instruments are intended to:
- Improve risk management options
- Enhance liquidity and depth in the corporate bond market
- Support market-based credit risk transfer
5. Changes Relating to Voluntary Retention Route (VRR) for FPIs
The RBI has announced two key decisions relating to Foreign Portfolio Investors (FPIs) under the Voluntary Retention Route (VRR):
5.1 Reckoning of VRR Investments
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Investments made under the VRR shall now be reckoned within the overall limit for FPI investments under the General Route.
5.2 Additional Operational Flexibilities
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Certain additional operational flexibilities will be provided to FPIs investing under the VRR, with a view to encouraging stable, long-term foreign capital inflows.
6. Overall Policy Objective
The Statement reflects RBI’s focus on:
- Enhancing consumer protection
- Supporting MSME credit growth
- Deepening financial markets
- Promoting stable and efficient capital flows
Click Here To Read The Full Press Release
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