Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025

RBI/DoR/2025-26/204 DoR.SOG(SPE).REC.No.123/13-04-001/2025-26 November 28, 2025

Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025

Table of Contents

Chapter I – Preliminary A. Short Title and Commencement B. Applicability C. Definitions

Chapter II – Role of the Board A. Board Approved Policies B. Key Responsibilities C. Reviews by the Board

Chapter III – Depositor Education and Awareness Fund A. Definitions B. Credits to the Fund C. Refunds and Interest D. Registration Guidelines E. Procedural Guidelines for Transfer and Claim F. Returns G. Disclosure in Notes to Accounts H. Audit I. Preservation of Records J. Furnishing of Information K. Contact Details L. Interpretation of the Provisions of the Scheme

Chapter IV – Services and Market Operations A. Sale of Gold / Silver / Platinum - Forward Contract B. Reporting of Corporate Bond Transactions C. Limits for Non-Option Derivative Contracts D. Deferment of Option Premium E. Camps and Campaigns for Periodic Updation of KYC

Chapter V – Regulatory Compliance and Legal Matters A. Implementation of Instructions Issued by RBI B. Legal Compliance C. Court Directives D. Inter-Governmental Agreement (IGA) with United States of America (US) under Foreign Accounts Tax Compliance Act (FATCA) - Registration Requirements

Chapter VI – Financial Conduct and Prohibited Activities A. Donations or Contributions for Public / Charitable Purposes B. Prohibition on Acceptance of Deposits at the Instance of Private Financiers / Unincorporated Bodies C. Prohibition on Association with Prize Chit Schemes and Sale of Lottery Tickets

Chapter VII – Taxation and Accounting Related Matters A. Demand for Information by Income Tax Authorities

Chapter VIII – Human Resource and Capacity Building A. Training and Awareness B. Certifications

Chapter IX – Operational and Administrative Matters A. Mandatory Leaves and Staff Rotation B. Statement of Immovable Property

Chapter X – Repeal Provisions A. Repeal and Saving B. Application of Other Laws not Barred C. Interpretations

Annex I Annex II Annex III Annex IV Annex V Annex VI Annex VII Annex VIII Annex IX Annex X

In exercise of the powers conferred by Section 26A and Section 35A of the Banking Regulation Act, 1949, 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 the Directions hereinafter specified.

Chapter I – Preliminary

A. Short Title and Commencement

1. These Directions shall be called the Reserve Bank of India (Small Finance Banks – Miscellaneous) Directions, 2025.
2. These Directions shall come into force with immediate effect.

B. Applicability

3. These Directions shall be applicable to Small Finance Banks (hereinafter collectively referred to as 'banks' and individually as a 'bank'). Provided that, directions contained in paragraph 36 relating to reporting of corporate bond transactions shall apply on to Primary Dealers.

C. Definitions

4. In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

• (1) 'Act' means the Banking Regulation Act, 1949 (10 of 1949); and
• (2) ‘DICGC' means the Deposit Insurance and Credit Guarantee Corporation established under Section 3 of the Deposit Insurance Corporation Act, 1961

5. Additional definitions have been provided in the respective chapters as per the applicability.
6. All other expressions, unless defined in the corresponding chapter, shall have the same meaning as have been assigned to them under the Reserve Bank of India Act, 1934, or the Banking Regulation Act, 1949, or any statutory modification or re-enactment thereto, or Glossary of Terms published by the RBI, or as used in commercial parlance, as the case may be.

Chapter II – Role of the Board

A. Board Approved Policies

7. A bank shall have separate Board-approved policies relating to the following areas:

• (1) making of donations, in line with instructions contained in paragraph 48 of these Directions;
• (2) courses / certifications required for specialised areas of operations as laid out in paragraph 58 and paragraph 59 of these Directions; and
• (3) list of sensitive positions to be covered under mandatory leave requirements in terms of paragraph 60 of these Directions.

B. Key Responsibilities

8. The Board of a bank shall fulfill the following responsibilities, if applicable:

• (1) 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 38 of these Directions; and
• (2) ensure that its directors are familiar with requisite techniques, technologies and concepts as detailed in paragraph 57 of these Directions.

C. Reviews by the Board

9. The Board of a bank shall review and update policies in respect of ‘mandatory leave' as set out in paragraph 60 of these Directions.

Chapter III – Depositor Education and Awareness Fund

A. Definitions

10. In this chapter, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

• (1) ‘Committee’ means the Committee constituted under the Fund;
• (2) 'Fund' means the Depositor Education and Awareness Fund established by RBI under the Scheme notified vide Gazette Notification dated May 24, 2014, hereinafter referred to as the Scheme;
• (3) 'Liquidator' means liquidator of a bank appointed under any law for the time being in force;
• (4) 'Principal amount' means the amount, including interest, transferred by a bank to the Fund in terms of Section 26A of the Act;
• (5) 'Amount due' means any credit balances in any account or any deposit in a bank remaining unclaimed or inoperative for ten years or more;

B. Credits to the Fund

11. A bank shall credit to the Fund the credit balance in any of the deposit account maintained with the bank which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as applicable to the banking entity. Explanation: A bank shall deposit the amounts to be credited to the Fund in the specified account maintained with RBI. The procedure for transfer is specified in paragraph 22 of these Directions.
12. A bank shall transfer to the Fund the entire amount as specified in the above paragraph, including the accrued interest that the bank would have been required to pay to the customer / depositor as on the date of transfer to the Fund.
13. Any amount payable in foreign currency under an instrument or a transaction, that has remained unclaimed for ten years or more, shall at the time of transfer to the Fund be converted into Indian Rupees at the exchange rate prevailing on that date and in the event of a claim, the Fund shall be liable to refund only the Indian Rupees received by the Fund with respect to such instrument or transaction.
14. Any expenditure incurred for the promotion of depositors’ education, awareness, interests and other purposes that may be specified by RBI under Section 26A (4) of the Act, shall be charged to the Fund.

C. Refunds and Interest

15. In case of demand from a customer / depositor (or legal heirs in case of deceased depositors) whose unclaimed amount / deposit had been transferred to the Fund, a bank shall repay the customer / depositor, along with interest if applicable, and lodge a claim for refund from the Fund for an equivalent amount paid to the customer / depositor. Explanation: While there is no specific time limit prescribed in the Scheme for claiming a refund from the Fund by a customer / depositor, customers, depositors or legal heirs [in case of deceased depositor(s)] are encouraged to claim such amounts as soon as they become aware of unclaimed amounts.
16. The interest payable, if any, from the Fund on a claim shall accrue only from the date on which the balance in an account was transferred to the Fund to the date of payment to the customer / depositor. No interest shall be payable in respect of amounts refunded from the Fund, in respect of which no interest was payable by the bank to its customer / depositor.
17. In the case of a claim for refund of foreign currency denominated deposit accounts, instruments or transactions, irrespective of whether a bank has paid the depositor or customer in Indian Rupees or foreign currency, the bank shall be entitled to claim refund of the eligible amount from the Fund, in Indian Rupees only.
18. A bank shall calculate the interest payable (by a bank to its depositors / claimants) on principal amount of unclaimed interest bearing deposits transferred to the Fund at the rate of 4 percent per annum up to June 30, 2018, 3.5 percent w.e.f. July 1, 2018 up to May 10, 2021 and at 3 percent with effect from May 11, 2021 till the time of payment to the depositor / claimant. Changes to the rate of interest, if any, payable on the principal amount transferred to the Fund shall be specified by RBI from time to time. Explanation: The amount of interest payable in this behalf shall be calculated in the manner specified in paragraph 16 of these Directions and by rounding off the amount of interest to the nearest rupee.
19. In the case of a bank under liquidation, during the pendency of the liquidation proceedings, if any claim is received from depositors whose deposits were covered by DICGC insurance at the time of transfer to the Fund, the Fund shall pay to the liquidator, an amount equal to the amount that could have been claimed from DICGC with respect to such deposits, and with respect to all other amounts paid by the liquidator towards the amounts transferred to the Fund, whether insured by DICGC or not, the Fund shall reimburse the liquidator. Explanation: In the case of a bank under liquidation, the depositor has to approach the Liquidator of the bank for claim and the Liquidator shall settle the claim as per the following procedure:

• (1) Scenario 1: Claim on Deposits Covered by DICGC - If the deposits of a customer / depositor were covered by DICGC insurance at the time of transfer to the DEA Fund, then the Liquidator can claim an amount equivalent to what could have been claimed from DICGC, and then make payment to the depositor. If the above deposit amount is more than the insurance cover of DICGC, then the Liquidator shall claim the amount in excess of DICGC insurance cover only on reimbursement basis i.e., the Liquidator shall pay such amount to the depositor subject to meeting all the applicable requirements and thereafter submit a claim to DEA Fund for reimbursement.
  • (i) Illustration 1 (DICGC Insurance Cover is up to ₹5 lakh): A customer / depositor had a deposit claim of ₹4 lakh in a bank (including accrued interest), which is now under liquidation. The deposit was insured by DICGC at the time when the said unclaimed deposit was transferred to the Fund. Now, if the customer / depositor claims the same during the liquidation process, the following steps shall be followed:
    • (a) The customer / depositor / legal heir submits a claim for their deposit to the liquidator.
    • (b) Liquidator raises an equivalent claim of ₹4 lakh from the Fund along with necessary supporting documents
    • (c) The Fund will pay an amount equal to the insured deposit to the Liquidator. (In this case, i.e., ₹4 lakh since DICGC insurance cover is available up to ₹5 lakh)
    • (d) The Liquidator, after receiving the amount from the Fund, will pay to the customer / depositor i.e., ₹4 lakh.
  • (ii) Illustration 2 (DICGC Insurance Cover is up to ₹5 lakh): A customer / depositor had a deposit claim of ₹6 lakh in a bank (including accrued interest), which is now under liquidation. The deposit was insured by DICGC at the time when the unclaimed deposit of the customer / depositor was transferred to the Fund. Now, if the customer / depositor claims the same during the liquidation process, the following steps shall be followed:
    • (a) The customer / depositor / legal heir submits a claim for their deposit to the liquidator.
    • (b) Liquidator raises an equivalent claim of ₹6 lakh from the Fund along with necessary supporting documents.
    • (c) The Fund shall pay an amount equal to the insured deposit to the Liquidator. (In this case, i.e., ₹5 lakh, since DICGC insurance cover is available up to ₹5 lakh)
    • (d) For the remaining amount (i.e., ₹1 lakh) the Liquidator shall make the payment to depositor subject to meeting all the applicable requirements and then claim for the same from the Fund by way of reimbursement.
• (2) Scenario 2: Claim on Deposits not Covered by DICGC - In respect of deposits not covered by DICGC at the time of transfer to Fund, the payment to the Liquidator by the Fund shall be made only on reimbursement basis (i.e., the Liquidator can only seek as a reimbursement after settling the amount to the customer / depositor) as mentioned in Illustration 2 above.

D. Registration Guidelines

20. Registration in e-Kuber System: A bank, if not already registered under the DEA Fund Module of the e-Kuber system, shall expeditiously register itself as a pre-requisite to remit the unclaimed amounts due and submit refund claims, as defined in the Scheme, in electronic form through e-Kuber system. A member bank, i.e., a bank with direct access to the e-Kuber system, shall share two e-mail ids with dea.fund@rbi.org.in to complete the registration process while a non-member bank shall provide two e-mail ids to its sponsor bank to complete the registration process. On completion of registration process, further communication from RBI shall be sent only to the two e-mail ids registered in the e-Kuber system.
21. Authorised Signatories: A bank shall designate up to a maximum of 10 officers as authorised signatories to operate the bank’s DEA Fund account jointly, who shall be responsible for authorising the applicable returns under the DEA Fund Scheme. It shall submit to RBI a certified true copy of the Resolution / Decision / Authorisation (in Hindi or English) of the Board / MD&CEO / ED / Committee of Executives empowered for the purpose along with the list of authorised signatories. Any update in the authorised officials shall be furnished in the prescribed format (Annex I), with details of both Resolution / Decision / Authorisation and specimen signatures of all the authorised signatories. Explanation: A bank, while communicating the changes made, shall ensure to submit details of all such authorised signatories and their specimen signatures to RBI, instead of furnishing only the additions or deletions made.

E. Procedural Guidelines for Transfer and Claim

22. Procedure for Transferring Unclaimed Amount to the Fund: A bank shall transfer to the Fund, the amounts becoming due in each calendar month (i.e., proceeds of the inoperative accounts and balances remaining unclaimed for 10 years or more) as specified in paragraph 12 of these Directions, i.e. including the interest accrued on interest bearing accounts till the date of transfer, during the last five working days of the subsequent month. Before transferring the amount due to the Fund, the bank shall ensure that all legal obligations relating to the same, till that date, including those pertaining to taxes deductible and payable, are met or adequate arrangements are made for the same.

• (1) Member Bank’s Own Account - A member bank shall transfer to the Fund, the entire amount due through e-Kuber system under the module “DEA Fund Services”. When a member bank is crediting amount due to the Fund, it shall furnish its DEA Fund Code in the “Bank DEA Fund Code” field and the detailed breakup (number of accounts and amount) of the deposits, viz., interest bearing deposits, non-interest bearing deposits and other credits, which also includes non-interest bearing amount (i.e., any amount other than deposits remaining unclaimed as mentioned in paragraph 11 of these Directions), in the fields provided for the same in the e-Kuber system.
• (2) Other Bank’s (Non-member) Account - In case a sponsor bank is remitting the amounts due of non-member banks, it shall not consolidate but separately remit the amount bank-wise to the Fund, by indicating appropriate Bank DEA Fund Code of the other (non-member) bank in the field provided in the e-Kuber. It shall also provide the detailed break-up (number of accounts and amount) of the deposits, viz., interest-bearing deposits, non-interest bearing deposits and other credits in the respective fields, i.e., the fields designated for the same, in the e-Kuber system.

23. Window for transferring unclaimed amount and submission of claim

• (1) Deposit Window: A bank shall ensure correctness of the amount and transfer unclaimed amounts / deposits to the Fund through e-Kuber during the last five working days of every month. A bank (including a non-member bank) shall effect only one transfer of unclaimed amounts per month. A non-member bank shall transfer the unclaimed amounts / deposits to its sponsor bank (through normal banking channel), sufficiently in advance of the due date, to enable the sponsor bank to transfer the same to the Fund through e-Kuber system. On receipt of the amount transferred to the Fund, an auto generated acknowledgement receipt will be directly sent from e-Kuber system to the registered e-mail ids of the bank.
• (2) Claim Window: A bank shall ensure correctness of the amount and submit claim from the Fund in e-Kuber system during the first 10 working days of every month. A bank shall submit only one consolidated claim per month. A non-member bank shall submit the claim to its sponsor bank sufficiently in advance of the due date, to enable the sponsor bank to submit the same to RBI through e-Kuber system.

24. Procedure for Submitting Claim

• (1) In case of demand from a customer / depositor, whose unclaimed amount / deposit had been transferred to the Fund, a bank shall repay the customer / depositor, along with interest, if applicable, and thereafter, lodge a claim for refund from the Fund for an equivalent amount paid to the customer / depositor. In case of any claim made by the customer / depositor for refund of only part amount, the bank shall repay the customer accordingly by making the account operative and keep the remaining amount (including the interest, if any) in the account, and thereafter lodge a claim for the entire amount from the Fund. Explanation: A bank may refer Reserve Bank of India (Small Finance Banks – Responsible Business Conduct) Directions, 2025 for operational guidelines on activation of inoperative accounts.
• (2) On submission of a claim, an auto generated Form II (Annex III) from the e-Kuber system will be sent to the registered e-mail ids of the banks / non-member banks. A bank shall submit a printout of the auto generated Form II signed by the authorised officials and certified by the bank’s auditors (internal / concurrent) to RBI, by e-mail and/or by post, within three working days of its submission on the e-Kuber system. The bank / non-member bank shall also submit a copy of the latest half-year Form III (Reconciliation Certificate – Annex VII) and Annual Certificate (Annex VIII), while submitting the first claim during the half-year / year, as the case may be, along with the claim form - Form II, else it will result in non-consideration of claim of the bank.
• (3) The claim will be examined by RBI. In case of a member bank, if the claim is in order, the claimed amount will be credited to the account of the member bank maintained with RBI by the end of the same month. In case of claims from the Fund by a non-member bank, RBI will credit the account of the sponsor bank and the sponsor bank shall credit the same to the non-member bank. The claim settlement / rejection advice will be sent on the registered e-mail ids.
• (4) The claims will be processed by RBI based on the information provided by a bank in Form II. Therefore, the onus of making correct refund claims from the Fund shall lie solely with the bank.