Important RBI Circulars for PPB 2026 — Must-Know Updates for JAIIB
Complete list of RBI Master Circulars and Directions relevant to Principles & Practices of Banking (PPB) paper for JAIIB 2026 exam, with key provisions explained.
IIBF regularly tests candidates on the latest RBI circulars in the PPB paper. Here are the most important Master Circulars and Directions you must know for JAIIB 2026.
1. KYC Master Direction (Updated 2025)
Circular: RBI/DoR/AML-KYC/2025-26/01
- Video-based Customer Identification Process (V-CIP) norms
- Aadhaar-based e-KYC for accounts up to ₹1 lakh balance
- Periodic KYC update timelines: High risk (2 years), Medium (8 years), Low (10 years)
- Central KYC Registry (CKYC) mandatory for all new accounts
- Beneficial ownership threshold: 10% for companies, 15% for partnerships
2. Digital Lending Guidelines (Sep 2022, Updated 2024)
Circular: RBI/2022-23/111 DOR.CRE.REC.66/21.07.001/2022-23
- All loan disbursals and repayments directly to/from borrower's bank account
- Lending Service Providers (LSPs) cannot access borrower's mobile data
- Cooling-off period mandatory for all digital loans
- Key Fact Statement (KFS) must be provided before loan agreement
- Annual Percentage Rate (APR) disclosure mandatory
3. Customer Service & Grievance Redressal
Circular: RBI Integrated Ombudsman Scheme 2021 (Updated 2024)
- Single point of reference for all banking complaints
- Complaint must be filed within 1 year of the cause of action
- Bank must resolve within 30 days, else escalate to Ombudsman
- Compensation up to ₹20 lakh for deficiency in service
- No cost to the complainant — completely free process
4. Priority Sector Lending (PSL) Norms
Circular: RBI Master Direction on PSL (Updated April 2025)
- Overall PSL target: 40% of ANBC (Adjusted Net Bank Credit)
- Agriculture: 18% (of which 10% to Small & Marginal Farmers)
- Micro Enterprises: 7.5% of ANBC
- Weaker Sections: 12% of ANBC
- Housing loans up to ₹35 lakh (metro) / ₹25 lakh (non-metro) qualify
- Education loans up to ₹20 lakh qualify as PSL
5. NEFT/RTGS/UPI Updates
Key Changes for 2025-26:
- NEFT: 24x7x365 availability, no charges for savings account holders
- RTGS: Minimum ₹2 lakh, available 24x7 since Dec 2020
- UPI: Transaction limit ₹1 lakh (₹2 lakh for verified merchants, ₹5 lakh for capital markets)
- UPI Lite: Offline payments up to ₹500 per transaction, ₹2,000 wallet limit
- e-Rupee (CBDC): Retail pilot expanded to all major banks
6. NPA Classification & IRAC Norms
Circular: Master Circular on IRAC Norms (DOR.STR.REC.55/21.04.048/2023-24)
- SMA-0: Principal/interest overdue 1-30 days
- SMA-1: Overdue 31-60 days
- SMA-2: Overdue 61-90 days
- NPA: Overdue > 90 days
- Doubtful: NPA for > 12 months
- Loss: Identified by bank/auditor/RBI as unrecoverable
7. Anti-Money Laundering (PMLA 2002)
Key Provisions for PPB:
- Cash Transaction Report (CTR): All cash transactions > ₹10 lakh in a month
- Suspicious Transaction Report (STR): Within 7 days of detection
- Record keeping: Minimum 5 years after account closure
- Principal Officer appointment mandatory for all banks
- Wire transfer rules: Originator info mandatory for transfers > ₹50,000
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