Latest RBI Guidelines 2026 - Key Changes

Last Updated: May 2026

1. No Prepayment Penalty on Floating Rate Loans

Effective April 1, 2026, RBI has removed prepayment and foreclosure penalties on all floating-rate loans to individual borrowers including home loans, car loans and personal loans.

2. Two-Factor Authentication (2FA) for Digital Payments

Mandatory Additional Factor of Authentication (AFA) for all digital payment transactions effective April 1, 2026. Covers UPI, mobile wallets, net-banking, QR-code payments and recurring mandates.

3. Revised ATM Transaction Rules

Updated free transaction thresholds and interchange structures. Banks must display revised fee structure prominently at ATM terminals, mobile apps and monthly statements.

4. Multiple Nominees for Bank Accounts

RBI now allows up to 4 nominees for bank accounts and lockers, increased from just 1 earlier. Customers are advised to update their nomination details immediately.

5. Silver as Loan Collateral

RBI has extended loan collateral eligibility to include silver ornaments and coins in addition to gold. This benefits households in tier-2 and tier-3 cities.

6. NBFC Registration Changes

New category introduced - "Unregistered Type I NBFCs" for entities with no public funds and no customer interface with assets below INR 1,000 crore. Existing NBFCs have window till September 30, 2026 to surrender Certificate of Registration.

7. Digital Fraud Compensation Framework

Banks and Payment Service Providers must implement revised customer liability limits, accelerated dispute timelines and submit quarterly fraud compensation reports to RBI.

8. Capital Market Exposure Rules

Implementation of new rules on capital market exposure postponed to July 1, 2026 from earlier deadline of April 1, 2026.

9. Revised Fixed Deposit Rules

New FD rules improve depositor protection, introduce clearer withdrawal provisions and strengthen maturity communication. Institutions must inform depositors about upcoming maturity dates.

10. Outward Remittance Services

RBI removed prior approval requirement for non-bank entities forming tie-up arrangements for outward remittance services through Authorised Dealer banks, effective May 2026.

Disclaimer: This article is for educational purposes only. Always refer to the official RBI website at www.rbi.org.in for the most current guidelines.