Banking and RBI
RBI revises agency business and referral rules for commercial banks, effective 1 January 2027 (notified 15 June 2026)
15 June 2026 | Reserve Bank of India
This item is carried forward from 15 June 2026. The RBI issued the Commercial Banks (Undertaking of Financial Services) Third Amendment Directions, 2026 (RBI/DoR/2026-27/125) under Section 35A of the Banking Regulation Act, 1949. It says the regulations on agency business and referral services were reviewed and a revised framework is provided.
The Directions come into effect on 1 January 2027, and customer service and conduct instructions will be consolidated in the Commercial Banks (Responsible Business Conduct) Directions, 2025. The Economic Times and The Times of India reported on 16 June 2026 that the RBI put curbs on banks' sale of third-party products and issued stricter norms against mis-selling.
Key facts- Directions: Commercial Banks (Undertaking of Financial Services) Third Amendment, 2026
- Issued: 15 June 2026; effective 1 January 2027
- Power: Section 35A, Banking Regulation Act, 1949
- Subject: agency business and referral services
Exam takeaway: Mis-selling norms govern how banks market third-party financial products.
Quick revision: RBI revised agency business and referral rules for banks, effective 1 Jan 2027.
Reserve Bank of India original sourceBanking and RBI
RBI issues comprehensive instructions on advertising, marketing and sale of financial products by NBFCs (notified 15 June 2026)
15 June 2026 | Reserve Bank of India
This item is carried forward from 15 June 2026. The RBI issued the NBFC (Responsible Business Conduct) Second Amendment Directions, 2026 (RBI/2026-27/123) to issue comprehensive instructions on advertising, marketing and sale of financial products and services, replacing earlier suitability instructions given in the Undertaking of Financial Services Directions, 2025.
The instructions apply to all NBFCs except Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies and NBFCs without a customer interface. They are issued under Sections 45JA, 45L and 45M of the RBI Act, 1934.
Key facts- Directions: NBFC (Responsible Business Conduct) Second Amendment, 2026
- Subject: advertising, marketing and sale of financial products
- Excluded: CICs, NBFC-AAs, NOFHCs, NBFCs with no customer interface
- Powers: Sections 45JA, 45L, 45M, RBI Act 1934
Exam takeaway: Customer appropriateness and suitability are core conduct principles for selling financial products.
Quick revision: RBI: NBFC advertising, marketing and sale norms, 15 June 2026.
Reserve Bank of India original sourceNational and International Affairs
Kishau Multipurpose Project: six States agree to sign MoU at meeting chaired by Amit Shah
16 June 2026 | Press Information Bureau
PIB said that at a meeting in New Delhi on 16 June 2026 chaired by Home Minister Amit Shah, Himachal Pradesh, Uttarakhand, Delhi, Uttar Pradesh, Haryana and Rajasthan agreed to sign an MoU for implementing the Kishau Multipurpose Project. After the MoU is signed, the project will be placed before the Union Cabinet for approval.
For the Kishau dam, 90 per cent of the cost of the water component will be borne by the Centre as Central Assistance, and the remaining 10 per cent shared by the six participating states. Himachal Pradesh's share of water will be allocated to Delhi and Rajasthan in return for their sharing the cost of Himachal's portion of the power component.
Key facts- Project: Kishau Multipurpose Dam (Yamuna rejuvenation)
- States: HP, Uttarakhand, Delhi, UP, Haryana, Rajasthan
- Water component: 90% Central Assistance, 10% by six states
- Next: MoU, then Union Cabinet approval
Exam takeaway: Multipurpose projects serve water supply, irrigation and power together.
Quick revision: Six states agree on Kishau project MoU, 16 June 2026 (PIB).
Press Information Bureau original source