RBI releases draft amendments to securitisation directions, invites public comments

The Reserve Bank of India (RBI) has issued draft amendments to its directions governing securitisation transactions, with a clear goal: to strengthen the market for Securitisation Notes (SNs) by improving **efficiency, liquidity and transparency** in their issuance and subsequent transfer.

The draft directions have been placed in the public domain for comments, signalling RBI’s consultative approach to refining market frameworks while supporting orderly growth in financial markets.

What RBI has proposed in the draft amendments

In its press release, the RBI said it has issued draft amendment directions for public comments across multiple regulated entities. The proposed draft directions are:

• **Reserve Bank of India (Commercial Banks - Securitisation Transactions) Amendment Directions, 2026**
• **Reserve Bank of India (Small Finance Banks - Securitisation Transactions) Amendment Directions, 2026**
• **Reserve Bank of India (Non-Banking Financial Companies - Securitisation Transactions) Amendment Directions, 2026**
• **Reserve Bank of India (All India Financial Institutions - Securitisation Transactions) Amendment Directions, 2026**

The RBI has framed these draft amendments “in line with the objective to improve efficiency, liquidity and transparency” in the issuance of Securitisation Notes and their later transfer.

While the central bank has not, in the press note, detailed specific clause-by-clause changes, the emphasis on issuance and subsequent transfer indicates a focus on how these instruments are created, held, and traded or transferred—areas that directly influence market depth and investor confidence.

Consultation process and how stakeholders can respond

The RBI has invited comments from the public and stakeholders **by 27 August 2026**.

Feedback can be submitted through the link available under the **‘Connect2Regulate’** section on the RBI website. Stakeholders may also send their comments to:

**The Chief General Manager, Credit Risk Group, Department of Regulation, Central Office, Reserve Bank of India, 12th/13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001**, or by email (as indicated in the RBI release).

By seeking views across banks, small finance banks, NBFCs and all-India financial institutions, the RBI is creating space for a broad set of market participants to weigh in. Such consultation can help ensure that final rules are workable in day-to-day operations, while still meeting policy objectives.

A constructive step for deeper, more transparent markets

Securitisation can help financial institutions manage balance sheets and free up capital for fresh lending by converting pools of assets into instruments that can be issued to investors. When the surrounding framework is clear and transparent, it can also enable better price discovery and smoother transferability.

The RBI’s stated intent—improving efficiency, liquidity and transparency—aligns with long-term efforts to make India’s financial markets more robust and investor-friendly. Greater clarity around issuance and subsequent transfer of Securitisation Notes can support consistent market practices and encourage wider participation, while maintaining prudential oversight.

As the draft directions move through consultation, industry feedback is expected to play an important role in shaping the final amendments.

**Why it matters:** A well-calibrated securitisation framework can support smoother credit flow and stronger market confidence. By inviting public comments on draft amendments, the RBI is encouraging participatory rule-making aimed at making securitisation markets more efficient, liquid and transparent in India.