Regulating Commercial Banking

The 3rd Annual Global Conference of the College of Supervisors of the Reserve Bank of India was held on Friday, January 9, 2026, on the theme, ‘Regulation and Supervision – Adapting to the Digital Age’. The Conference was inaugurated by the Governor, RBI, Shri Sanjay Malhotra.

The Reserve Bank had undertaken a review of the extant guidelines on the prudential norms on declaration of dividend and remittance of profits by foreign banks operating in branch mode in India. Accordingly, a draft of the revised framework was issued for public comments on January 2, 2024. However, based on the stakeholder feedback and consultations, the following draft Directions proposing a new methodology for computing the maximum eligible dividend payout are being issued for public comments:

The Reserve Bank of India (RBI) has released Supervisory Data Quality Index (sDQI) for SCBs for September 2025. It measures data quality in terms of the Accuracy, Timeliness, Completeness and Consistency in the submission of returns. The objective of sDQI is to assess the adherence to the principles enunciated in the Master Direction on Filing of Supervisory Returns 2024.

The Reserve Bank of India had, on October 03, 2025, issued eight draft Directions on Lending to Related Parties, viz.,: (i) Reserve Bank of India (Commercial Banks – Lending to Related Parties) Directions, 2025 (ii) Reserve Bank of India (Small Finance Banks – Lending to Related Parties) Directions, 2025 (iii) Reserve Bank of India (Regional Rural Banks – Lending to Related Parties) Directions, 2025 (iv) Reserve Bank of India (Local Area Banks – Lending to Related Parties) Directions, 2025 (v) Reserve Bank of India (Urban Co-operative Banks – Lending to Related Parties) Directions, 2025 (vi) Reserve Bank of India (Rural Co-operative Banks – Lending to Related Parties) Directions, 2025 (vii) Reserve Bank of India (Non-Banking Financial Companies – Lending to Related Parties) Directions, 2025 and (viii) Reserve Bank of India (All India Financial Institutions – Lending to Related Parties) Directions, 2025 seeking feedback from stakeholders. The draft directions were aimed primarily at providing a harmonised, principle-based framework to be adopted by REs while lending to related parties, suitably rationalising the existing provisions.

A) Analysis of the performance under the Citizen’s Charter during the month of December 2025 has been carried out, and the summary thereof is given below – Description No. of Applications A Applications pending at the beginning of the month 3,217 B Applications received during the month 24,544 C Referred back to applicants for additional information 388

The Reserve Bank of India had, on October 24, 2025, issued draft Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Amendment Directions, 2025 seeking feedback from stakeholders. The amendment directions were aimed primarily at aligning risk weights with the actual risk characteristics of operational infrastructure projects thereby promoting better risk assessment and capital allocation.

Today, in compliance with Section 36 (2) of the Banking Regulation Act, 1949, the Reserve Bank of India released the Report on Trend and Progress of Banking in India 2024-25. This Report presents the performance of the banking sector, including commercial banks, co-operative banks and non-banking financial institutions, during 2024-25 and 2025-26 so far.

(Amount in ₹ crore) SCHEDULED COMMERCIAL BANKS (Including RRBs, SFBs and PBs) ALL SCHEDULED BANKS 13-Dec-2024 28-Nov-2025* 12-Dec-2025* 13-Dec-2024 28-Nov-2025* 12-Dec-2025* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 310793.89 322855.52 308250.18 315564.52 330192.04 315428.19** b) Borrowings from banks 131991.65 78658.89 81098.47 132026.65 78790.89 81166.47 c) Other demand & time liabilities 24423.19 31092.93 33036.68 24724.99 31559.27 33573.84