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ARTICLE · 22 SEPTEMBER 2026

Banking & Finance Updates September 2026

King, Stubb & Kasiva
King, Stubb & Kasiva
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King, Stubb & Kasiva

King, Stubb & Kasiva

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In August 2026, the Reserve Bank of India (RBI) released the draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026, proposing a comprehensive framework for the way regulated entities determine and apply interest rates on loans. While the Indian banking sector has long operated under a patchwork of institution specific instructions, the draft Directions seek to bring much-needed consistency to interest rate regulation across banks, cooperative banks, regional rural banks (RRBs), all-India financial institutions and NBFCs. If finalised in their present form, the Directions will come into effect from 1 April 2027.

IndiaFinance and Banking
Jidesh Kumar
Jidesh Kumar
Rajesh Sivaswamy
Rajesh Sivaswamy
Siddartha Karnani
Siddartha Karnani
Asha Kiran Sharma
Asha Kiran Sharma
Aurelia Menezes
Aurelia Menezes
Nivedita Bhardwaj
Nivedita Bhardwaj
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1.  RBI's Draft Interest Rates on Loans and Advances Directions, 2026

 A Unified Framework for Loan Pricing

In August 2026, the Reserve Bank of India (RBI) released the draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026, proposing a comprehensive framework for the way regulated entities determine and apply interest rates on loans. While the Indian banking sector has long operated under a patchwork of institution-specific instructions, the draft Directions seek to bring much-needed consistency to interest rate regulation across banks, cooperative banks, regional rural banks (RRBs), all-India financial institutions and NBFCs. If finalised in their present form, the Directions will come into effect from 1 April 2027.

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