RBI Seeks Stakeholder Feedback on Major Consolidation of Control and Assurance Functions for All Regulated Entities

RBI Seeks Stakeholder Feedback on Major Consolidation of Control and Assurance Functions for All Regulated Entities​

Reserve Bank of India (RBI) has today launched a significant public consultation initiative concerning the governance framework across its regulated sector. The central bank has issued draft Amendment Directions inviting comments from all relevant stakeholders regarding the Harmonisation and Consolidation of Instructions on Control and Assurance Functions. This move signals RBI's commitment to standardizing regulatory oversight and improving operational consistency across diverse financial institutions in India.

The exercise aims to consolidate scattered regulations into unified instructions, ensuring that critical control and assurance functions are robustly defined for every type of regulated entity. Financial industry leaders and practitioners are being sought to provide input on these draft directions before the official consultation period concludes.

Scope of Harmonised Amendment Directions​

The range of entities covered by these comprehensive amendment directives highlights the broad impact of RBI's move toward greater regulatory coherence. The instructions address governance specifics for Commercial Banks, Small Finance Banks (SFBs), and Payments Banks. These institutions are expected to align their control functions with the newly consolidated guidelines.

Furthermore, the draft amendments encompass various specialized financial entities. Instructions have been issued covering Local Area Banks, Regional Rural Banks, and Urban Co-operative Banks. The RBI has also addressed the governance needs of Non-Banking Financial Companies (NBFCs) and Credit Information Companies.

Governance Focus Across Specialized Institutions​

The regulatory scope extends significantly beyond traditional banking institutions. Separate amendment directions are available for Asset Reconstruction Companies and specialized financial entities. These includes a dedicated direction set for All India Financial Institutions, allowing tailored input based on entity complexity and function. The RBI has ensured that this consolidation covers the full spectrum of financial services providers it oversees.

Timeline and Submission Guidelines for Stakeholders​

Regulated entities and public stakeholders who wish to contribute feedback must adhere strictly to the defined timelines and submission channels. All comments or feedback regarding the draft Amendment Directions must be submitted on or before July 9, 2026.

Stakeholders have two primary methods for submitting their input. Firstly, they can submit feedback via the 'Connect 2 Regulate' section on the RBI website, following the specific hyperlink corresponding to each document. Secondly, targeted submissions can be made via email.

Feedback Channels by Entity Type​

The RBI has categorized the submission processes based on the entity type for ease of navigation. Entities including Commercial Banks, Small Finance Banks, Payments Banks, Local Area Banks, Regional Rural Banks, and All India Financial Institutions must direct their comments to the designated email channel. Similarly, feedback from Urban Co-operative Banks, Rural Co-operative Banks, Non-Banking Financial Companies, Credit Information Companies, and Asset Reconstruction Companies needs to be sent through the second dedicated email address provided by the bank regulator.