RBI September 2025 Circulars, Major Changes and Updates for the Banking Sector

The Reserve Bank of India (RBI) issued several important circulars and regulatory updates during September 2025, bringing notable changes for banks, NBFCs, payment aggregators, and customers. These new directions and guidelines aim to strengthen digital payments, enhance customer security, and streamline several operational processes in the banking system. For banking exam candidates, knowing the major circulars, their objectives, and impacts is vital for the General Awareness section.

RBI September 2025 Circulars

In September 2025, key RBI circulars included new master directions for Payment Aggregators, important amendments on interest rates for loans, new rules for loans against gold and silver, standardized procedures for settling deceased customers’ claims, and regulatory capital updates for banks. These circulars also introduced stricter penalties and digital reporting standards, ensuring enhanced accountability and transparency across all banks and financial institutions.

RBI Circulars September 2025

Here is a detailed summary of major RBI Circulars and changes issued in September 2025, organized for banking exam preparation and the General Awareness section:

1. Master Direction on Regulation of Payment Aggregators (PA), 2025

Date Issued: September 15, 2025

New rules for Payment Aggregators (PAs) in India for banks and non-bank entities.

Non-bank PAs must have ₹15 crore net worth initially, rising to ₹25 crore in 3 years.

All PA entities must apply for RBI authorisation by 31st December 2025; non-compliance means business closure by February 2026.

Capital requirements, reporting, and technology security guidelines are defined to ensure safe digital transactions.

Payment Gateway (PG) entities remain exempt as they only provide technical processing, not fund transfer.

2. RBI (Interest Rate on Advances) Amendment Directions, 2025

Banks can now reduce loan spreads for borrowers before the 3-year reset period to retain customers.

Borrowers with floating-rate loans can opt for fixed rates at reset.

Eases customer retention and flexibility; effective from October 1, 2025.

3. RBI (Lending Against Gold & Silver Collateral)- 1st Amendment, 2025

Loans for purchase/investment in gold, silver, or gold-backed assets are not permitted.

Working capital loans are permitted for manufacturers who use gold/silver as raw material for productive tasks, not speculation.

Applies to Scheduled Commercial Banks and Tier 3–4 Urban Co-operative Banks.

4. Basel III- Perpetual Debt Instruments (PDIs) under AT1 Capital

Standardizes capital treatment for banks issuing PDIs (both foreign currency and INR bonds).

New limit: 1.5% of risk-weighted assets for Scheduled Commercial Banks, Small Finance Banks, and Payment Banks, calculated from the latest financials.

5. RBI Directions for Settlement of Deceased Claims

Standardized process for claim settlement on deposits in case of the account holder’s death.

Expedites settlement via nominee/survivorship clause without legal documents.

For accounts without nominees, simplified claim procedure up to ₹15 lakh (commercial banks) and ₹5 lakh (co-op banks). No third-party surety required within limits.

6. Monetary Penalty Updates

RBI imposed monetary penalties on several banks for rule violations in KYC, priority sector lending, and other compliance issues.

Example: Indian Overseas Bank penalized ₹31.8 lakh for priority sector lending lapses.

7. Regulatory Reporting Updates

RBI mandated returns related to internet/mobile banking to be filed using the Centralized Information Management System (CIMS) portal from September 2025 onwards.