RBI updates 28 September-4 October 2026: bank stake approvals

Mutual funds, insurers and pension funds can now get one-time approval for later acquisitions of major shareholding in commercial, small finance, payments and local area banks. The amendment directions apply immediately.

A Master Direction on note sorting machines requires quarterly accuracy tests and BIS-certified machines for new purchases; discontinued models must go by 30 June 2027. RBI also withdrew 268 currency management circulars.

Authorised dealers' boards now set the Form A2 rules for outward remittances and may delegate that to a committee. The NRD-CSR return moves to the CIMS Sankalan portal, due by the 10th of the next month. ATM cassette swap monitoring can move from the board to an executive committee.

Section 35A directions on Innovative Co-operative Urban Bank, New Delhi and The Industrial Co-operative Bank, Guwahati were extended to 4 January 2027. RBI also updated one entry on the UNSC ISIL and Al-Qaida sanctions list and reissued the SC/ST credit Master Circular.

States plan to borrow Rs 3,60,820 crore in October to December 2026, and six more states and J&K join the benchmark issuance framework. RBI published the Ways and Means Advances committee report and set the FRB 2028 rate at 6.45 percent.

RBI drained surplus liquidity through daily overnight VRRR auctions and a 4-day VRRR on 1 October, alongside an OMO sale, T-bill, dated security and state loan auctions, and daily money market reports.

Data releases put external debt at USD 778.2 billion at end-June 2026 and non-food bank credit growth at 18.8 percent in August. RBI also named Sudhakar Malli Executive Director from 1 October.