RBI’s latest Directions are about much more than compliance. They’re about trust.
Why did RBI feel the need to issue these Directions? – Because the biggest risk today isn’t just credit risk or liquidity risk it’s conduct risk.
Mis-selling, opaque disclosures, aggressive sales practices, dark patterns, and poor customer outcomes can erode confidence in the entire financial system. The Responsible Business Conduct (Second Amendment) Directions, 2026 signal RBI’s intent to make customer trust a governance priority—not just a business objective.
The message is simple: Good governance is no longer measured only by financial resilience, but also by how fairly customers are treated.
A question to ponder on – Is your Enterprise Risk Management framework capturing conduct risk with the same rigour as credit, liquidity and operational risk?
The attached carousel captures the key changes and what every NBFC should start preparing for.
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