Banking and RBI
RBI revises NBFC-Upper Layer identification: Rs 1,00,000 crore asset threshold
24 June 2026 | Reserve Bank of India
The RBI on 24 June 2026 issued Amendment Directions on the review of the methodology for identifying NBFCs in the Upper Layer (NBFC-UL) and on inclusion of Government-owned NBFCs. The draft, issued on 10 April 2026 with comments till 4 May, proposed replacing the existing methodology with a transparent, simple and absolute criterion: asset size of Rs 1,00,000 crore and above.
The draft also proposed considering eligible Government-owned NBFCs for the NBFC-UL list on the revised criterion, and allowing all NBFC-UL to use State Government guarantees as a credit risk transfer instrument without limit, subject to conditions. The RBI also dealt with the draft circular on credit and investment concentration norms for Government-owned NBFCs. The final text beyond the opening part was not read.
Key facts- Directions: NBFC-UL methodology review, 24 June 2026
- Draft proposal: absolute criterion of Rs 1,00,000 crore assets
- Draft issued 10 April 2026; comments till 4 May 2026
- State Government guarantees as CRT instrument (draft proposal)
Exam takeaway: NBFC-UL is the Upper Layer of the Scale Based Regulation framework for NBFCs.
Quick revision: RBI NBFC-UL directions: Rs 1,00,000 crore asset criterion (draft, finalised 24 June).
Reserve Bank of India original sourceBanking and RBI
RBI issues final Net Open Position directions for forex risk capital charge
24 June 2026 | Reserve Bank of India
The RBI on 24 June 2026 issued final Amendment Directions on 'Net Open Position - Revised Instructions', after draft directions of 14 January 2026 (comments till 3 February).
The draft proposed doing away with separate offshore and onshore NOP calculation, including accumulated surplus of overseas operations in NOP, keeping the forex risk capital charge on the actual NOP, modifying the Shorthand method in line with Basel guidelines (treating gold open position separately) and exempting certain structural forex positions. Feedback was examined and modifications incorporated into the final directions.
Key facts- Directions: Net Open Position - Revised Instructions, 24 June 2026
- Draft: 14 January 2026
- Capital charge on actual NOP (as proposed in draft)
- Gold open position treated separately under Shorthand method (draft)
Exam takeaway: NOP is a bank's net exposure to foreign currencies; capital is held against forex risk.
Quick revision: RBI final NOP directions, 24 June 2026.
Reserve Bank of India original sourceBanking and RBI
RBI issues final directions on limiting customer liability in digital transactions, effective 1 January 2027
24 June 2026 | Reserve Bank of India
The RBI on 24 June 2026 issued Amendment Directions on the review of the framework of limiting customer liability in digital transactions, effective from 1 January 2027. Draft directions of 6 March 2026 followed the 6 February 2026 policy statement.
The draft proposed to extend the limited-liability instructions beyond unauthorised electronic banking transactions to other categories of fraudulent electronic banking transactions, reduce the time banks take to process fraud complaints, and introduce a compensation mechanism for small value fraudulent electronic banking transactions. Feedback was examined and changes incorporated; the final details were not read in full.
Key facts- Effective: 1 January 2027
- Draft: 6 March 2026 (policy announcement 6 February 2026)
- Draft scope: wider fraud categories, faster complaint handling
- Draft: compensation for small value fraud
Exam takeaway: Zero or limited customer liability depends on prompt reporting by the customer.
Quick revision: RBI customer liability directions for digital fraud, effective 1 Jan 2027.
Reserve Bank of India original source