The RBI Circulars June 2026 have been released and include several important regulatory updates announced by the Reserve Bank of India for banks, financial institutions, and the financial sector. These circulars cover topics such as REIT and InvIT lending norms, the FCNR(B) swap facility, Foreign Portfolio Investment (FPI) regulations, India–Cambodia UPI payment connectivity, FEMA liberalisation, Government Securities investment guidelines, concentration risk management, revised risk weights, Responsible Business Conduct guidelines, and the Account Aggregator ecosystem.
In this blog, we have provided the details of the RBI Circulars June 2026. We have also provided a practice quiz with multiple-choice questions, correct answers, and detailed explanations to help you revise the latest RBI circulars effectively.
What are the important RBI Circulars released in June 2026?
The Reserve Bank of India (RBI) released several important circulars and regulatory updates in June 2026 covering banking operations, payment systems, lending frameworks, foreign exchange regulations, financial markets, and customer protection. These updates aim to improve transparency, strengthen risk management, promote financial inclusion, and provide a better regulatory framework for banks and financial institutions.
| RBI Circular / Scheme | Key Details |
| REITs and InvITs Lending Guidelines | Lending conditions, eligibility criteria, exposure norms, refinancing, and leverage limits |
| Concentration Risk Management | Internal exposure limits and 10% prudential ceiling for commercial banks |
| REIT Exposure Risk Weight Guidelines | Risk weights of 100%, 125%, and 150% based on different REIT exposures |
| Payment System Authorization Guidelines | RBI approval, promoter criteria, net worth requirements, and fit & proper norms for payment system operators |
| FATF Investment Guidelines | Restrictions on fresh investments from FATF non-compliant jurisdictions |
| ECGS 5.0 Risk Weight Norms | 0% risk weight benefit on 75% of guaranteed loan portion under ECGS 5.0 |
| FCNR(B) and NRE Deposit Relaxation | Temporary removal of interest rate ceiling to encourage NRI deposits and foreign currency inflows |
| CRR & SLR Exemption for NRI Deposits | Exemption for eligible fresh FCNR(B) and NRE deposits meeting tenure conditions |
| Lead Bank Scheme Review | Updated framework for LDM, DDM, LDO, SLBC, and district-level banking coordination |
| Kisan Credit Card (KCC) Guidelines | Simplified credit facility for farmers covering crop loans, allied activities, and agriculture needs |
| Trade Receivable Discounting System (TReDS) | Guidelines for MSME invoice financing, platform operators, and receivable assignment |
| UPI Cross-Border Connectivity | India-Cambodia QR-based merchant payment facility |
| UPI Credit Line Guidelines | Regulatory framework for pre-sanctioned credit lines through UPI |
| FPI Investment in Government Securities | Removal of sub-limits under the General Route for government securities |
| Sahamati Foundation Recognition | Recognized as SRO for the Account Aggregator ecosystem |
| FEMA Liberalisation | Wider participation of foreign investors in listed Indian companies |
| NBFC Scale-Based Regulation | Updated norms for upper-layer NBFCs, government NBFCs, and infrastructure finance companies |
| Credit Derivatives Guidelines | Framework for CDS, Total Return Swaps, and credit index futures |
| Responsible Business Conduct Guidelines | Customer protection, prevention of mis-selling, dark patterns, bundling, and digital marketing practices |
Download RBI Circulars June 2026 Practice Quiz PDF
The RBI Circulars June 2026 Practice Quiz PDF brings together the latest regulatory updates issued by the Reserve Bank of India during June 2026. It contains exam-oriented MCQs with correct answers and detailed explanations to help candidates strengthen their understanding of the latest RBI circulars.
Attempt the RBI Circulars June 2026 Quiz
The RBI Circulars June 2026 Quiz helps candidates evaluate their understanding of the latest RBI circulars through exam-oriented multiple-choice questions. It covers all the important regulatory updates released during June 2026, making it a useful resource for practice, revision, and improving conceptual clarity before the examination.
1. Under the RBI Master Direction on Authorization of Payment System Operators, when can a payment system application be submitted?
2. According to the RBI Master Direction on Payment System Operators, which of the following entities would NOT be automatically classified as part of the promoter group?
3. What is ‘effective control’ over a Payment System Operator as per RBI’s Master Direction on Payment Systems?
4. Under the RBI’s fit and proper criteria for Payment System Operators, which of the following disqualifies a person from eligibility?
5. Under the RBI Master Direction on Payment Systems, what is the status of the Certificate of Authorization granted to a compliant PSO?
6. Under the ECLGS 5.0 amendment direction, what risk weight is assigned to 75% of the government-guaranteed portion of eligible loans?
7. Which institution administers the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0?
8. Under the ECLGS 5.0 framework, a higher risk weight applies to which portion of the guaranteed loan?
9. What is the impact of a higher risk weight on a bank’s Capital Adequacy Ratio (CAR)?
10. For which specific deposits did RBI temporarily withdraw the interest rate ceiling from June 17, 2026 to September 30, 2026?
11. Under the RBI circular on interest rates for NRI deposits, what is the minimum tenure of FCNR(B) deposits eligible for the temporary rate ceiling relaxation?
12. The temporary CRR and SLR exemption provided by RBI for FCNR(B) and NRE deposits applies to deposits of which tenure?
13. The Lead Bank Scheme was originally introduced in which year?
14. Under the Lead Bank Scheme, which type of bank can be designated as a Lead Bank for a district?
15. The Lead District Manager (LDM) under the Lead Bank Scheme is appointed by whom?
16. Under the Lead Bank Scheme, who appoints the District Development Manager (DDM)?
17. Who is appointed as the Lead District Officer (LDO) under the Lead Bank Scheme?
18. What is the correct bottom-up approach for credit planning under the Lead Bank Scheme as prescribed by RBI?
19. Under the Lead Bank Scheme, when the CD (Credit-Deposit) ratio of a district falls below 40%, which body monitors and takes action?
20. Under the Lead Bank Scheme, what is the minimum CD ratio target for banks’ rural and semi-urban branches?
Quiz Summary
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1. As per RBI’s amendment direction on bank lending to REITs and InvITs, the revised provisions become applicable from:
2. RBI’s amendment direction on bank credit facilities to REITs/InvITs amends which earlier direction?
3. Banks may extend credit facilities to a REIT or InvIT only if the entity is:
4. For overseas branches of Indian banks participating in a global loan syndication to a foreign REIT, the aggregate exposure across all overseas branches is capped at:
5. SBI’s Singapore branch contributes ₹150 crore to a ₹1,000 crore syndicated loan extended to a foreign REIT. Is this within the RBI prescribed overseas branch exposure cap?
6. DSCR, a benchmark banks must assess before lending to a REIT/InvIT, stands for:
7. Under the eligibility conditions, a bank may lend to a REIT only if it is listed and at least what percentage of its underlying assets have been generating positive cash flow from operations for at least one year?
8. Bank finance to refinance an existing SPV loan under a REIT structure is permitted only when:
9. Which repayment structure is expressly disallowed for bank loans extended to REITs/InvITs?
10. Acquisition finance extended by a bank to a REIT (for acquiring stake in another entity/SPV) is governed by:
11. The overall leverage of a borrowing REIT must remain within:
12. The aggregate exposure of all lending banks (together with the REIT’s underlying SPVs and holding company) to a single borrowing REIT must not exceed:
13. Bank financing extended to REITs/InvITs, as per the amended direction, must be:
14. For an InvIT to be loan-eligible, what minimum share of its asset value must be complete and revenue-generating, having posted positive net cash flow from operations in the preceding year?
15. Under RBI’s Concentration Risk Management (Third Amendment) direction, banks must, in addition to fixing sub-limits for real estate exposure, also determine:
16. Under the Concentration Risk Management amendment, a commercial bank’s exposure to REITs is capped at what percentage of its eligible capital base?
17. The Concentration Risk Management (Third Amendment) direction capping REIT exposure at 10% of eligible capital base takes effect from:
18. Under the prescribed risk-weight framework, a bank’s normal exposure to a REIT—treated as commercial real estate exposure—attracts a risk weight of:
19. If a bank’s REIT exposure additionally qualifies as capital market exposure, the applicable risk weight is:
20. Lending to REITs by the overseas branches of an Indian bank attracts a risk weight of:
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What are the key highlights of RBI Master Direction on Authorization to Operate as a Payment System?
The Reserve Bank of India (RBI) issued the Master Direction on Authorization to Operate as a Payment System to bring all existing instructions under a single regulatory framework. The direction provides clear guidelines for entities that want to operate as payment system operators (PSOs). It focuses on authorization requirements, eligibility conditions, promoter criteria, net worth requirements, and RBI’s fit and proper norms. The main objective is to create a simplified and uniform regulatory structure for payment systems in India.
- Single Regulatory Framework:
- The Master Direction consolidates all previous instructions related to authorization of payment system operators.
- It provides one common framework for entities applying to operate payment systems.
- Applicability of the Direction:
- Applicable to entities applying for authorization to operate as a payment system.
- Existing authorized payment system operators under the Payment and Settlement Systems Act must also follow these guidelines.
- RBI Authorization is Mandatory:
- No entity can operate a payment system without obtaining authorization from the Reserve Bank of India.
- Applications can be submitted on an on-tap basis, meaning entities can apply throughout the year without waiting for a fixed application window.
- Promoter Group Criteria:
- Promoters are entities having effective control over the payment system operator.
- Effective control generally refers to holding more than 50% ownership or control.
- A bank, mutual fund, or foreign institutional investor (FII) holding more than 10% shares will not automatically become a promoter group member unless it is a strategic investor.
- Eligibility Requirements for Authorization:
- The applicant must apply through the prescribed RBI portal.
- The entity needs to provide statutory auditor certification for meeting the required net worth criteria.
- The entity must satisfy RBI’s fit and proper criteria, including integrity, reputation, and ethical conduct.
- Fit and Proper Criteria:
- Individuals involved should have a good reputation and clean record.
- Persons convicted for moral turpitude, economic offences, or RBI-related offences are not eligible.
- Undischarged insolvent persons and financially unsound individuals cannot participate.
What are the FATF-related investment rules for Payment System Operators?
The RBI has also provided guidelines regarding investments from FATF-compliant and non-compliant jurisdictions. Existing investors from a jurisdiction that later becomes FATF non-compliant can continue their investment. However, fresh investments from FATF non-compliant jurisdictions are restricted to maintain regulatory control and financial security.
| Area | Details |
| Existing Investment | Allowed if the investment was made when the jurisdiction was FATF compliant |
| Fresh Investment | Not permitted from FATF non-compliant jurisdictions |
| Significant Influence | Such investors cannot gain significant influence over the payment system operator |
| Associate Company Criteria | Holding 20% or more but up to 50% voting power can create significant influence |
| Subsidiary Company Criteria | Holding more than 50% voting power results in control and subsidiary status |
What are the authorization and ownership rules under the RBI Payment System Direction?
The RBI provides authorization to eligible payment system operators after checking compliance with all required conditions. The authorization is generally provided on a perpetual basis, meaning it continues unless withdrawn due to non-compliance. The RBI may provide temporary renewal to existing non-compliant payment system operators and can later withdraw authorization if regulations are not followed.
- Voting power should remain below 20% to avoid creating significant influence.
- Both existing voting rights and potential rights (such as convertible securities) are considered.
- Convertible instruments that may later convert into equity are also included while calculating influence.
- The objective is to prevent investors from gaining indirect control over payment system operators.
What did RBI change for lending to REITs and InvITs?
The RBI introduced new guidelines allowing banks to provide loans to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) while maintaining proper risk management. These directions become applicable from 1 April 2027 and focus on safe lending practices.
- Lending is allowed only to SEBI-registered and regulated REITs and InvITs.
- Banks must have a Board-approved lending policy.
- Legal due diligence is mandatory.
- End-use monitoring of funds is compulsory.
- Debt Service Coverage Ratio (DSCR) should be assessed.
- Lending to stressed SPVs is restricted.
- Refinancing is allowed only for completed projects.
- Bullet and balloon repayment structures are not permitted.
- Aggregate bank exposure cannot exceed 49% of REIT asset value.
- Loans should remain fully secured.
What are the important eligibility conditions for REITs and InvITs?
RBI has prescribed minimum eligibility requirements before banks can extend credit facilities. These conditions ensure that lending is made only to financially stable investment trusts.
- Must be listed.
- Must be regulated by SEBI.
- At least 80% of assets should be income-generating.
- Assets should have generated positive operational cash flow for at least one year.
- Overall leverage should remain within SEBI limits or bank-approved limits, whichever is lower.
What are the important exposure limits introduced by RBI?
The RBI has also prescribed exposure limits to reduce concentration risk in the banking system. These limits prevent excessive lending to a single sector or entity.
| Particular | Limit |
| Overseas branch participation in foreign REIT syndication | Up to 20% |
| Aggregate bank exposure to REIT assets | Maximum 49% |
| Commercial bank exposure to REIT sector | Maximum 10% of eligible capital base |
| Applicability of lending framework | From 1 April 2027 |
| Concentration risk amendment | Effective from 1 October 2026 |
What are the revised risk weights for REIT exposures?
The RBI has clarified the capital treatment for different types of REIT lending. These risk weights are important for banking examinations.
| Type of Exposure | Risk Weight |
| Commercial Real Estate Exposure | 100% |
| Capital Market Exposure | 125% |
| Overseas Branch Lending to Foreign REITs | 150% |
What is the India-Cambodia UPI payment connectivity?
The RBI announced cross-border payment connectivity between India and Cambodia. The initiative allows Indian tourists to make merchant payments in Cambodia using UPI-enabled QR codes, improving digital payment acceptance across borders.
- UPI-based QR code payments.
- Supports Indian tourists.
- Improves international digital payment acceptance.
- Implemented with NPCI International and partner institutions.
- Promotes India’s digital payment ecosystem globally.
What changes were made for Foreign Portfolio Investors (FPIs)?
The RBI simplified investment rules for FPIs investing in Government Securities through the General Route. Certain sub-limits have been removed to make investments easier.
- Removal of short-term investment sub-limit.
- Removal of security-wise limit.
- Removal of concentration limit.
- General investment limits continue to apply.
- Clearing Corporation of India Limited (CCIL) monitors utilisation.
What is the FCNR(B) Swap Facility introduced by RBI?
The RBI introduced a USD-INR swap facility to encourage banks to mobilize Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits. This initiative strengthens India’s foreign exchange reserves while providing rupee liquidity to banks.
| Feature | Details |
| Eligible Banks | AD Category-I Banks |
| Deposit Tenure | Minimum 3 years |
| Maximum Tenure | 5 years |
| Currency | US Dollar |
| Eligible Deposits | Fresh FCNR(B) deposits only |
| Swap | USD-INR Forex Swap |
| Operational Department | RBI Financial Markets Operations Department |
What CRR and SLR benefit did RBI provide for FCNR(B) deposits?
To encourage long-term foreign currency deposits, RBI provided regulatory relief to banks.
- FCNR(B) deposits with 3–5 year maturity qualify.
- Eligible deposits are exempt from CRR.
- Eligible deposits are exempt from SLR.
- Applicable across eligible banking institutions.
- Helps banks mobilize long-term foreign currency resources.
What changes were made under FEMA for foreign investors?
The RBI liberalised investment rules under the FEMA regulations by expanding investment eligibility beyond only NRIs and Overseas Citizens of India (OCIs).
- Resident individuals outside India can invest.
- Investments can be made through recognised stock exchanges.
- Investments qualify under the Foreign Portfolio Investment framework.
- AD Category-I Banks may open repatriable INR accounts.
- Investments remain subject to RBI and FEMA regulations.
What is Responsible Business Conduct according to RBI?
The RBI issued comprehensive directions to strengthen customer protection and improve ethical marketing of banking products and services. The guidelines focus on preventing unfair selling practices and improving transparency.
- Prevent mis-selling of financial products.
- Restrict compulsory bundling of products.
- Prohibit dark patterns in digital applications.
- Require explicit customer consent.
- Improve complaint handling systems.
- Regulate Direct Selling Agents (DSAs).
- Ensure transparent advertisements.
- Strengthen governance for third-party product sales.
FAQs
They cover REIT and InvIT lending, FCNR(B) swap facility, FPI regulations, FEMA updates, UPI connectivity, risk management, and customer protection.
The RBI introduced new eligibility conditions, exposure limits, refinancing norms, and risk management requirements for bank lending.
It is a USD-INR forex swap facility that helps banks mobilize eligible FCNR(B) deposits while improving rupee liquidity.
The RBI removed certain investment sub-limits under the General Route to simplify investments in Government Securities.
It enables Indian tourists to make QR code-based merchant payments in Cambodia using UPI.
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