MUMBAI, India, May 18 -- Reserve Bank of India issued the following notification:
RBI/2026-27/86
DOR.MRG.REC.No.74/00-00-001/2026-27
May 18, 2026
Reserve Bank of India (Local Area Banks - Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026
Please refer to paragraph 104 of Reserve Bank of India (Local Area Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025, dated November 28, 2025, on Investment Fluctuation Reserve (IFR). In view of the developments in the prudential frameworks governing market risk and investments for Local Area Banks, there is a need to amend the extant instructions.
2. Accordingly, in exercise of the powers conferred by Section 35A of t...