RBI has amended the Commercial Banks (Undertaking of Financial Services) Directions 2025, to strengthen governance, risk management, and regulatory clarity for banks and their group entities undertaking non-core financial services. The amendments expand coverage to all NBFCs and HFCs within bank groups and extend uniform lending restrictions earlier applicable only to banks. They introduce revised definitions to delineate agency business, referral services, and group entities; reinforce departmentalization and “one business–one entity” principles; and prescribe stricter investment caps and compliance timelines, with phased implementation and specified reporting obligations.
