RBI seeks public suggestions on proposed banking rules:Banks to implement apex bank’s regulations guidelines by April 2026

Many major changes are coming in your bank’s operations in the next 3-4 months. RBI has released drafts of 238 banking rules for public review. Suggestions have been invited on these until 10 November. Former RBI Governor R. Gandhi said, “For the first time in regulatory laws, drafts are being released to the public for their suggestions.” The new rules will be implemented from the beginning of 2026. Under the proposed reforms, in cases of cyber fraud, if the customer reports within three days, their liability will be zero. If banks don’t take timely action, they can be fined up to ₹25,000. In case of theft or negligence, banks will have to pay compensation up to 100 times the locker rent. KYC for regular accounts will be needed to be done once in 10 years, medium-risk accounts every 8 years, and high-risk accounts every 2 years. A uniform formula will be applied in determining loan interest rates. Prepayment penalties will be eliminated on all loans. Customers above 70 years will get doorstep banking facility. After considering these suggestions, all these rules will be implemented from 01, January to 01, April 2026. Know in 20 points… Proposed major changes and their impact on you? 1. Locker theft/damage: Bank will have to pay compensation 100 times the rent. Before: Bank had no accountability. Impact: Will get strong security guarantee. 2. Claim Settlement: Claims must be settled within 15 days. Before: No time limit was set. Impact: Solution will be found quickly. 3. Cyber Fraud: If customer reports within three days liability is 0, if bank delays fine of ₹25,000 will be paid. Before: There was no timeline. Impact: Banks will become accountable. 4. KYC: Regular accounts every 10 years, medium risk every 8 years, high risk every 2 years KYC. Before: Time was not fixed. Impact: Freedom from frequent updates. 5. KYC Outsourcing: Banks will do KYC themselves, no agencies. Before: Many banks used to outsource. Impact: Customer data more secure. 6. Senior Citizen Banking: Those above 70 years will get doorstep service. Before: No clear rules on this. Impact: Banking made easier for elderly. 7. Loan Interest Formula: Interest will be determined by unified formula. Before: Banks used to set their own rates. Impact: Transparency and equality will increase. 8. Short-term Loans: Loans less than 3 years also not below MCLR. Before: Could be given at lower rates. Impact: Discrimination in interest rates eliminated. 9. Prepayment Penalty Eliminated: No additional charges on all loans. Before: Exemption was only on retail loans. Impact: Early loan repayment made easier. 10. Loan Details: Bank must provide details of interest, fees, penalties. Before: Information used to be unclear. Impact: Hidden charges will be eliminated. 11. Unclaimed Deposits: Bank will return money upon claim, then take from RBI. Before: Amount used to go to RBI fund. Impact: Deposit refund will be easier. 12. Ban on Lottery/Chit Fund: Such accounts or transactions will not be approved. Before: There was no restriction on lottery. Impact: Protection from fraudulent schemes. 13. CIBIL Update: Payment/default will be updated by 15th of every month. Before: There was a 90-day timeline. Impact: Credit score reporting will improve. 14. Seized Property: Seized properties will be updated monthly on website. Before: Details were not made public. Impact: Customers will get complete information. 15. Loan Down Payment: 80% will be given on home loans above ?20 lakhs. Before: Limit was 90% on all loans. Impact: Higher down payment will be required. 16. Digital Loan: Minimum 1-day cooling off period mandatory. Before: No time limit was set. Impact: There will be a deadline for loan cancellation. 17. Loan Documents: Banks will return within 30 days after loan repayment, or else ₹5,000 penalty per day. Before: There was no fixed limit. Impact: The hassle will end. 18. Gold Loan Auction: Customer presence and affidavit will be mandatory. Before: Companies did it at their discretion. Impact: Fair auction will be possible. 19. Property Declaration: Private bank employees must provide property details. Before: Was only applicable in government sector. Impact: Transparency and accountability will increase. 20. Leave for Sensitive Posts: Bank employees must take 10 days mandatory leave. Before: Was not uniform across all banks. Impact: Will help prevent fraud.