What changed
RBI amended the Local Area Banks (Miscellaneous) Directions, 2025 by adding 'AgriSURE - Agri Fund for Start Ups & Rural Enterprises' to Annex XII. This change takes effect immediately from the date of notification, April 27, 2026.
What it means for you
Local Area Banks now have a new eligible investment avenue in the form of the AgriSURE fund, which supports agri-startups and rural enterprises. This could help LABs diversify their portfolios and support rural entrepreneurship, aligning with priority sector objectives.
What you must do
- Update internal investment policies to include AgriSURE fund as an eligible investment under Annex XII.
- Review current investment portfolios to assess potential allocation to the AgriSURE fund.
- Ensure compliance with all other provisions of the Local Area Banks Directions, 2025.
- Communicate the change to relevant treasury and compliance teams.
Who it affects
Local Area Banks (LABs), Treasury departments of LABs, Compliance teams of LABs
When does this amendment take effect?
The amendment is effective immediately from the date of notification, April 27, 2026, as stated in the RBI notification.