Reserve Bank of India (All India Financial Institutions – Miscellaneous) Directions, 2025 · RBI/DoR/2025-26/338
RBI master-direction RBI/DoR/2025-26/338 · 28 Nov 2025
RBI master-direction RBI/DoR/2025-26/338 · 28 Nov 2025
Summary
Check the official recordThe Reserve Bank of India issues these directions to regulate All-India Financial Institutions (AIFIs). The directions mandate board-approved policies for staff certifications in specialized areas and staff rotation. AIFIs must establish an Audit Committee of the Board to oversee internal audit functions and statutory reporting. The directions define conditions for deferring option premiums and require reporting of corporate bond transactions on the FIMMDA platform. AIFIs must also comply with registration requirements under the Foreign Accounts Tax Compliance Act (FATCA) for their domestic and overseas branches. These rules apply to EXIM Bank, NABARD, SIDBI, NHB, and NaBFID with immediate effect.
What you must do
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Who is affected
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RBI/DoR/2025-26/338 DoR.SOG(SPE).REC.No.257/13-04-001/2025-26 November 28, 2025
In exercise of the powers conferred by Section 45 L of the Reserve Bank of India Act, 1934, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby issues these Directions hereinafter specified.
These Directions shall be called the Reserve Bank of India (All India Financial Institutions – Miscellaneous) Directions, 2025.
These Directions shall come into force with immediate effect.
(1) ‘Director’ means a director appointed on the Board of an AIFI.
An AIFI shall have a Board-approved policy relating to courses / certifications required for specialised areas of operations as laid out in paragraph 15 and paragraph 16 of these Directions.
The Board of an AIFI shall extend facility of deferment of option premium only after conducting due diligence of users in accordance with its Board approved policy in this regard, as set out in paragraph 11 of these Directions.
Provided that directors representing staff, if any, may not be included in the ACB.
The ACB may meet, at least, once a quarter but not less than six times a year.
The functions of ACB may include, inter alia, the following:
(1) providing direction as also overseeing the operation of the total audit functions of the AIFI. Total audit function implies the organisation, operationalisation and quality control of internal audit and inspection within the AIFl and follow-up on the statutory/ external audit of the AIFI and inspections of RBI;
(2) reviewing the internal inspections/ audit function in the institution - the system, its quality and its effectiveness in terms of follow-up. It may also focus on the follow-up on frauds and major areas of house-keeping;
(3) following up on all the issues raised in the statutory audit reports. It may interact with the external auditors before the finalisation of the annual/semi-annual financial accounts and reports; and
(4) following up all the issues/ concerns raised in the inspection reports of RBI.
(1) the AIFI shall carry out necessary due diligence with regard to the ability of users to adhere to the premium payment schedule, in accordance with its Board approved policy in this regard, before extending this facility to the users;
(2) premium for option contracts / structures with tenure of more than one year may be deferred, provided the premium payment period does not extend beyond the maturity date of the contract; and
(3) premium shall be received uniformly over the maturity of the contract and periodicity of such payment shall be at least once in a quarter.
Provided that, in case of forex option structures, the above facility shall be available only if the liability of the users never exceeds the net premium payable to the AIFI under any scenario.
Provided further that, the above facility shall not be available to an intermediary AIFI which does not have its own option book but offers the product to corporate clients on a completely covered basis since intermediary AIFI itself is not a ‘user’.
Provided further that, options and option structures shall continue to be governed by instructions on suitability and appropriateness laid down in Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021.
Explanation: The bank may refer detailed operational guidelines in this regard issued by FIMMDA.
An AIFI, if not already registered with US authorities as per the Government of India’s Inter-Governmental Agreement (IGA) with US to implement Foreign Accounts Tax Compliance Act (FATCA), shall register itself and obtain a Global Intermediary Identification Number (GIIN).
Further, an AIFI having overseas branches in jurisdictions covered under different FATCA frameworks is required to take appropriate registration actions as under:
(1) An AIFI having overseas branches in Model 1 jurisdictions, including those jurisdictions where an agreement under Model 1 has been reached in substance, and is yet to register with US authorities, shall register itself and obtain a GIIN.
(2) An AIFI having overseas branches in a jurisdiction having IGA 2 agreement or in a jurisdiction that does not have an IGA but permits financial institutions to register and agree to an FFI agreement, may register with US authorities and obtain a GIIN, if not already registered, to avoid potential withholding under FATCA.
(3) An AIFI having overseas branches in a jurisdiction that does not have an IGA and does not permit financial institutions to register and agree to an FFI agreement may not register and their overseas branches would eventually be subject to withholding under FATCA.
Provided that, if registration of a parent AIFI / head office is a pre-requisite for a branch to register, such an AIFI may register itself.