RBI Circular for September 2026
Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Second Amendment Directions, 2026
August 25, 2026
1. Please refer to the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Directions, 2025 (hereinafter referred to as ‘Directions’), dated November 28, 2025 (Updated as on June 17, 2026), wherein temporary withdrawal of the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and restriction on interest rates on NRE deposits of 3 year and above tenors, including the deposits that are renewed upon maturity, have been provided with effect from June 17, 2026, for the period until September 30, 2026. On a review, it has been decided to amend the date ‘September 30, 2026’ to the date ‘August 31, 2026’ for the aforementioned temporary relaxation.
2. Accordingly, in exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act,1949 and all other laws enabling the Reserve Bank India (RBI) in this regard, the RBI, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
3. These Amendment Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Second Amendment Directions, 2026.
4. These Amendment Directions shall come into force with immediate effect.
5. These Amendment Directions shall modify the Directions, as under:
i. In paragraph 24(4) subscript (1), the phrase “with effect from June 17, 2026, for the period until September 30, 2026” shall be substituted with “with effect from June 17, 2026, for the period until August 31, 2026”.
ii. In paragraph 29(7) subscript (2), the phrase “with effect from June 17, 2026, for the period until September 30, 2026” shall be substituted with “with effect from June 17, 2026, for the period until August 31, 2026”.
Consolidation of Supervisory Instructions – Repeal of Circulars
July 31, 2026
1. Please refer to the press release issued on July 31, 2026 announcing the release of 64 Consolidated Directions administered by the Department of Supervision (DoS) of the Reserve Bank of India.
2. These Directions encompass all instructions issued by DoS as well as the erstwhile Departments whose supervisory functions have been merged into DoS, either partly or fully. Further, the extant instructions considered obsolete have been excluded from the consolidated Directions as they are no longer relevant.
3. Accordingly, the 628 circulars listed in the Annex, comprising those whose instructions have been consolidated into these Directions, as well as those which have become obsolete or redundant, are hereby repealed by the Reserve Bank with immediate effect.
4. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions, instructions, or guidelines shall continue to be governed by the provisions thereof.
Fake Indian Currency Notes (FICNs)-Detection, Reporting and Monitoring
July 31, 2026
1.Master Direction (MD) on Counterfeit Notes – Detection, Reporting and Monitoring dated April 01, 2026, prescribes comprehensive instructions to the banks on detection, reporting, and monitoring of counterfeit notes. In this regard, the banks are mandated to train all their employees handling cash about the security features of genuine banknotes to enable them for detecting counterfeit notes. All banknotes received by the bank shall be examined for authenticity through machines, counterfeit notes should be impounded in all cases and in no case the counterfeit note shall be returned to tenderer or destroyed at the bank. All detected FICNs should be reported, as per prescribed guidelines. The bank shall be penalized for breach of the guidelines of the referred MD, such as detection of counterfeit notes in currency remittances to RBI/ currency chest balances/ ATM dispensations/ over-the-counter payments, non-impounding of counterfeit notes, etc.
2. However, an analysis by the Reserve Bank suggests that efforts of some of the banks in the matter were not adequate. Accordingly, the banks are advised to review their processes so as to further strengthen their capacity and preparedness to identify, impound and report FICNs effectively. In this regard, the banks are also advised to undertake the following specific measures –
i. Training and Awareness Programme
a) Adopt a focused and target-based approach for conducting awareness and/ or refresher programs for cash handling staff on the security features of genuine banknotes and detection of FICNs. It shall be ensured that all the cash handling staff of the bank are imparted training positively by October 31, 2026.
b) The staff posted in bank branches located in border areas shall be imparted the training on priority basis, latest by September 15, 2026.
c) An Action Taken Report (ATR) shall be submitted on compliance of the instructions at para (a) and (b) above through the Forged Note Vigilance Cells (FNV Cell) to the concerned Issue Office of Reserve Bank by November 7, 2026, and September 22, 2026, respectively.
ii. Provision of Devices Facilitating Detection of Counterfeit Notes
In addition to the instructions at para 8 of the referred MD the banks shall ensure that the branches in the districts with international borders are equipped with Note Authentication/ Sorting Machines.
iii. The FNV Cell of banks shall analyse the FICN data of their bank to identify hotspots (if any), monitor trends and focus their outreach and capacity-building efforts accordingly.
3. Compliance to the instructions in Master Direction
Banks are advised to institute a monitoring mechanism to ensure compliance of all the provisions of the referred MD. Details of the plan of action along with progress shall be submitted by September 15, 2026, to the Department of Currency Management at dcmfnvd@rbi.org.in.