{"id":196696,"date":"2026-04-14T16:40:00","date_gmt":"2026-04-14T11:10:00","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=196696"},"modified":"2026-04-14T12:25:03","modified_gmt":"2026-04-14T06:55:03","slug":"top-10-banking-reforms-2025-26-ibps-sbi-exams","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/","title":{"rendered":"Top 10 Banking Sector Reforms in 2025-26 Every Aspirant Must Know"},"content":{"rendered":"<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/www.practicemock.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/www.practicemock.com\/blog\/category\/banking-awareness\/\">Banking Awareness<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">Top 10 Banking Reforms 2025\u201326<\/span><\/span><\/div>\n\n\n<p>Preparing for IBPS PO, IBPS Clerk, SBI PO, SBI Clerk, or RRB exams in 2026? Here&#8217;s something you need to know \u2014 the <strong>General Awareness section loves banking reforms<\/strong>. And 2025-26 has been one of the most reform-heavy years in Indian banking history.<\/p>\n\n\n\n<p>We&#8217;ve gone through every official RBI circular, PIB release, and government gazette to bring you the <strong>top 10 banking reforms<\/strong> that are most likely to appear in your exam. Each one comes with a quick exam tip so you know exactly what to memorise.<\/p>\n\n\n\n<p>\ud83d\udcdd <strong>Before you read on:<\/strong> Test your existing banking knowledge with a <a href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\">Free Banking Awareness Mock Test on PracticeMock<\/a> \u2014 India&#8217;s most trusted exam prep platform used by 15 lakh+ aspirants.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\"> Click here: Free Banking Awareness Mock Test on PracticeMock<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #1<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Banking Laws (Amendment) Act, 2025<\/h3>\n\n\n\n<p>This is the biggest banking law overhaul in years. The <strong>Banking Laws (Amendment) Act, 2025 (Act No. 16 of 2025)<\/strong> amends five major legislations \u2014 the RBI Act 1934, Banking Regulation Act 1949, SBI Act 1955, and the Banking Companies (Acquisition) Acts of 1970 and 1980. It was notified on <strong>April 15, 2025<\/strong>, with provisions rolled out in three stages: August 1, November 1, and December 15, 2025.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strengthens depositor protection with improved multi-nominee facility (up to 4 nominees per account)<\/li>\n\n\n\n<li>Improves audit quality and governance in Public Sector Banks<\/li>\n\n\n\n<li>Uniform reporting by all banks to the RBI<\/li>\n\n\n\n<li>Extends director tenure in co-operative banks to up to 10 years<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> Remember \u2014 5 acts amended, notified April 15, 2025, effective in stages from August 1, 2025. This is a high-frequency MCQ topic. Source: <em>PIB \/ pib.gov.in<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #2<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Repo Rate Cut Cycle: 6.50% \u2192 5.25%<\/h3>\n\n\n\n<p>The RBI cut the repo rate by a cumulative <strong>125 basis points<\/strong> during 2025 \u2014 from 6.50% to 5.25% \u2014 marking its most aggressive easing cycle since 2019. The rate was last reduced by 25 bps in <strong>December 2025<\/strong>. At the April 8, 2026 MPC meeting, the rate was <strong>held unchanged at 5.25%<\/strong> due to global geopolitical uncertainty (West Asia conflict), with a neutral policy stance maintained.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Current repo rate: <strong>5.25%<\/strong> (as of April 8, 2026)<\/li>\n\n\n\n<li>SDF rate: 5.00% | MSF\/Bank Rate: 5.50%<\/li>\n\n\n\n<li>FY27 GDP growth projected at <strong>6.9%<\/strong> | FY27 CPI at <strong>4.6%<\/strong><\/li>\n\n\n\n<li>Next MPC meeting: June 3\u20135, 2026<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> Current repo rate = 5.25%. Total cut in 2025 = 125 bps. MPC is chaired by RBI Governor <strong>Sanjay Malhotra<\/strong>. Source: <em>RBI Monetary Policy Statement, April 6\u20138, 2026 (rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=62514)<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\"> Free Banking Awareness Mock Test on PracticeMock<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #3<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Master Directions Consolidation \u2014 9,445 Circulars Replaced<\/h3>\n\n\n\n<p>On <strong>November 28, 2025<\/strong>, the RBI issued one of the biggest regulatory cleanups in Indian banking history. Over <strong>9,000+ circulars<\/strong> issued by its Department of Regulation \u2014 some dating back decades \u2014 were consolidated into <strong>244 entity-specific Master Directions<\/strong>. A total of <strong>9,445 circulars were officially withdrawn<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>244 Master Directions cover 11 categories of regulated entities<\/li>\n\n\n\n<li>Around 3,500 active circulars were merged into the Master Directions; remaining ~5,673 were repealed as obsolete<\/li>\n\n\n\n<li>Expected to cut compliance burden significantly for banks and NBFCs<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> Date: <strong>November 28, 2025<\/strong>. Numbers to remember: <strong>244 Master Directions, 9,445 circulars withdrawn<\/strong>. Source: <em>RBI Circular RBI\/2025-26\/100, Business Standard<\/em><\/p>\n\n\n\n<p>\ud83d\ude80 <strong>Halfway through! Are you exam-ready?<\/strong><\/p>\n\n\n\n<p>Sign up FREE on PracticeMock and get instant access to 200+ Banking Awareness practice questions, topic-wise mock tests, and detailed solutions \u2014 all based on the latest reforms.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\">\ud83d\udc49 Register for Free \u2014 No Credit Card Needed<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #4<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">New Digital Banking Guidelines \u2014 Effective April 1, 2026<\/h3>\n\n\n\n<p>From <strong>April 1, 2026<\/strong>, the RBI mandated a revised digital payment security framework. All banks must implement <strong>2-factor or risk-based authentication<\/strong> for every digital transaction. Advanced verification methods \u2014 including biometric checks and device fingerprinting \u2014 are permitted.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Banks bear additional liability if authentication fails on international or recurring transactions<\/li>\n\n\n\n<li>Strict cybersecurity, auditing, and customer consent requirements<\/li>\n\n\n\n<li>All BSBD (zero-balance) account holders must receive full free digital banking services<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> Keyword: <strong>risk-based authentication<\/strong>. Effective: <strong>April 1, 2026<\/strong>. BSBD = Basic Savings Bank Deposit Account. Source: <em>RBI Regulatory Circular, 2026<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #5<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">BSBD Accounts \u2014 Free Digital Banking for All<\/h3>\n\n\n\n<p>Under the revised guidelines (effective April 2026), all banks must provide <strong>completely free digital banking services<\/strong> to Basic Savings Bank Deposit (BSBD) \u2014 also called zero-balance \u2014 account holders. This is a major financial inclusion push.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Free mobile and internet banking, ATM\/debit card, and cheque books for BSBD holders<\/li>\n\n\n\n<li>Existing savings account customers may request conversion to BSBD<\/li>\n\n\n\n<li>Only one BSBD account allowed per individual across the banking system<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> BSBD = zero-balance account. Connect this to <strong>financial inclusion<\/strong> for descriptive questions. Source: <em>RBI, 2026 Digital Banking Framework<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #6<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Revised Liquidity Coverage Ratio (LCR) Norms<\/h3>\n\n\n\n<p>The RBI updated the <strong>LCR framework<\/strong> to account for digital-age bank runs \u2014 where customers can withdraw funds instantly via apps. Digital deposits now carry <strong>higher outflow assumptions<\/strong>, requiring banks to hold more <strong>High-Quality Liquid Assets (HQLA)<\/strong> as a buffer.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Effective: April 1, 2026<\/li>\n\n\n\n<li>Banks with large digital deposit bases must maintain higher HQLA<\/li>\n\n\n\n<li>Designed to strengthen banks against sudden mass withdrawals through digital channels<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> LCR = ability to survive a 30-day financial stress. HQLA = assets quickly convertible to cash (e.g., govt securities). Source: <em>RBI Circular, April 2026<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #7<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Expected Credit Loss (ECL) Framework<\/h3>\n\n\n\n<p>Currently, Indian banks set aside provisions only after a loan turns bad. The new <strong>ECL (Expected Credit Loss) framework<\/strong>, announced by RBI in October 2025, will require banks to <strong>proactively provision for expected future losses<\/strong> \u2014 aligning India with global standards (IFRS 9). A <strong>four-year glide path until March 2031<\/strong> has been provided for smooth transition.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Replaces the older &#8220;incurred loss&#8221; (backward-looking) provisioning model<\/li>\n\n\n\n<li>Gradual implementation: full compliance by March 2031<\/li>\n\n\n\n<li>Aligns Indian banks with global accounting standards<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> ECL = <strong>forward-looking<\/strong>. Incurred Loss = <strong>backward-looking<\/strong>. Glide path till <strong>March 2031<\/strong>. Source: <em>RBI Development and Regulatory Policies Statement, October 2025<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #8<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Revised Basel III Framework \u2014 Effective April 2027<\/h3>\n\n\n\n<p>The RBI announced a revised <strong>Basel III capital adequacy framework<\/strong>, effective from April 2027. This brings India in line with updated global banking safety standards.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduced risk weights for <strong>MSME loans and residential housing loans<\/strong> \u2014 encourages more lending to these sectors<\/li>\n\n\n\n<li>Revised standardised approach for credit risk calculation<\/li>\n\n\n\n<li>India&#8217;s minimum Capital Adequacy Ratio (CAR): <strong>11.5%<\/strong> (global minimum: 8%)<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> Revised Basel III effective: <strong>April 2027<\/strong>. India&#8217;s CAR = <strong>11.5%<\/strong>. Source: <em>RBI Statement on Regulatory Policies, October 2025<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #9<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Revised Priority Sector Lending (PSL) Guidelines<\/h3>\n\n\n\n<p>The RBI issued revised <strong>PSL guidelines effective April 1, 2025<\/strong> after a comprehensive stakeholder review. These significantly enhance credit flow to housing, renewable energy, MSMEs, and weaker sections.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Housing loans<\/strong>: \u20b950 lakh (cities with 50L+ population) | \u20b945 lakh (10L\u201350L) | \u20b935 lakh (below 10L)<\/li>\n\n\n\n<li><strong>Renewable energy<\/strong>: Up to \u20b935 crore for power generators; \u20b910 lakh for individual households<\/li>\n\n\n\n<li><strong>UCB PSL target<\/strong>: 60% of ANBC or CEOBSE (whichever is higher)<\/li>\n\n\n\n<li>Cap on individual women beneficiary loans removed; transgenders added to Weaker Sections<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong> PSL target for SCBs = <strong>40% of ANBC<\/strong>. Agriculture sub-target = <strong>18%<\/strong>. Effective: <strong>April 1, 2025<\/strong>. Source: <em>RBI Master Direction on PSL, March 24, 2025 (rbidocs.rbi.org.in)<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reform #10<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">RBI&#8217;s FREE-AI Framework for Responsible AI in Banking<\/h3>\n\n\n\n<p>In a forward-looking move, the RBI launched the <strong>FREE-AI (Framework for Responsible and Ethical Enablement of AI)<\/strong> in October 2025. This creates a regulatory ecosystem for safely deploying artificial intelligence \u2014 from fraud detection to credit underwriting \u2014 in Indian banking.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A <strong>GenAI Digital Sandbox<\/strong> allows banks and fintechs to test AI tools with live customer data in a controlled environment<\/li>\n\n\n\n<li>26 actionable recommendations on data privacy, algorithmic fairness, and cybersecurity<\/li>\n\n\n\n<li>Focus on building indigenous AI to reduce foreign tech dependency<\/li>\n<\/ul>\n\n\n\n<p><strong>\ud83c\udfaf Exam Tip:<\/strong><strong>FREE-AI<\/strong> = Framework for Responsible and Ethical Enablement of AI. Announced: <strong>October 2025<\/strong>. Source: <em>RBI Statement on Development and Regulatory Policies, October 2025<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Quick Revision Table \u2014 All 10 Reforms at a Glance<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>#<\/th><th>Reform<\/th><th>Key Number \/ Date to Remember<\/th><th>Source<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>Banking Laws (Amendment) Act, 2025<\/td><td>5 acts; notified Apr 15, 2025; effective Aug 1, 2025<\/td><td>PIB \/ Gazette<\/td><\/tr><tr><td>2<\/td><td>Repo Rate Cuts<\/td><td>6.50% \u2192 5.25% (125 bps cut); held Apr 8, 2026<\/td><td>RBI MPC<\/td><\/tr><tr><td>3<\/td><td>Master Directions Consolidation<\/td><td>244 MDs; 9,445 circulars withdrawn; Nov 28, 2025<\/td><td>RBI<\/td><\/tr><tr><td>4<\/td><td>Digital Banking Guidelines<\/td><td>2-factor\/risk-based auth; effective Apr 1, 2026<\/td><td>RBI<\/td><\/tr><tr><td>5<\/td><td>BSBD Free Digital Access<\/td><td>Zero-balance accounts; full digital services free<\/td><td>RBI<\/td><\/tr><tr><td>6<\/td><td>Revised LCR Norms<\/td><td>Digital deposits = higher outflow assumption; Apr 2026<\/td><td>RBI<\/td><\/tr><tr><td>7<\/td><td>ECL Framework<\/td><td>Forward-looking provisioning; glide path till Mar 2031<\/td><td>RBI Oct 2025<\/td><\/tr><tr><td>8<\/td><td>Revised Basel III<\/td><td>Effective Apr 2027; India CAR = 11.5%<\/td><td>RBI Oct 2025<\/td><\/tr><tr><td>9<\/td><td>Revised PSL Guidelines<\/td><td>Housing \u20b950L metro; Renewable \u20b935Cr; effective Apr 1, 2025<\/td><td>RBI Mar 2025<\/td><\/tr><tr><td>10<\/td><td>FREE-AI Framework<\/td><td>26 recommendations; GenAI sandbox; Oct 2025<\/td><td>RBI Oct 2025<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Now put this knowledge to the test!<\/strong><\/p>\n\n\n\n<p>PracticeMock has Banking Awareness mock tests specifically built around 2025-26 reforms, RBI policies, and IBPS\/SBI exam patterns. Join 15 lakh+ aspirants who are already preparing smarter.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\">Start Your Free Mock Test at PracticeMock.com<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final Thoughts<\/h2>\n\n\n\n<p>The 2025-26 banking reforms aren&#8217;t just policy updates \u2014 they&#8217;re <strong>exam goldmines<\/strong>. Every reform on this list can appear as an MCQ, a fill-in-the-blank, or even a descriptive question in your upcoming banking exam.<\/p>\n\n\n\n<p>The best strategy is simple: <strong>don&#8217;t just read \u2014 test yourself<\/strong>. Reading without practice is the biggest mistake aspirants make.<\/p>\n\n\n\n<p>\ud83d\udd25 <strong>Ready to crack your banking exam in 2026?<\/strong><\/p>\n\n\n\n<p>Join 15 lakh+ aspirants on PracticeMock. Get free mock tests, topic-wise practice on every reform listed above, and exam-specific GA question banks.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\">\u2705 Sign Up Free at PracticeMock.com \u2014 Start Practicing Now<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions (FAQs)<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1776148796747\"><strong class=\"schema-faq-question\">Q1. Which banking reforms are most important for IBPS PO \/ SBI PO 2026?<\/strong> <p class=\"schema-faq-answer\">The top priorities are the <strong>Banking Laws (Amendment) Act 2025<\/strong>, the <strong>repo rate at 5.25%<\/strong>, the <strong>Master Directions consolidation (Nov 28, 2025)<\/strong>, and the <strong>new digital banking guidelines (Apr 1, 2026)<\/strong>. These have all been directly in the news and frequently appear in General Awareness sections.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776148806006\"><strong class=\"schema-faq-question\">Q2. What is the current repo rate in India as of April 2026?<\/strong> <p class=\"schema-faq-answer\">The current repo rate is <strong>5.25%<\/strong>, held unchanged at the April 6\u20138, 2026 MPC meeting under RBI Governor <strong>Sanjay Malhotra<\/strong>. The RBI cut rates by a total of 125 basis points during 2025, starting from 6.50%. The SDF rate is 5.00% and the MSF\/Bank Rate is 5.50%.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776148820455\"><strong class=\"schema-faq-question\">Q3. What does the Banking Laws (Amendment) Act, 2025 change?<\/strong> <p class=\"schema-faq-answer\">It amends five acts including the RBI Act (1934) and the Banking Regulation Act (1949). Key changes include: allowing up to <strong>4 nominees per bank account<\/strong>, strengthening depositor protection, improving PSB audit quality, and extending co-operative bank director tenure to up to 10 years. It was notified on <strong>April 15, 2025<\/strong> and rolled out in stages from August 1, 2025.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776148838006\"><strong class=\"schema-faq-question\">Q4. What is RBI&#8217;s FREE-AI framework?<\/strong> <p class=\"schema-faq-answer\"> <strong>FREE-AI<\/strong> stands for <em>Framework for Responsible and Ethical Enablement of Artificial Intelligence<\/em>. Launched by RBI in October 2025, it enables banks and fintechs to test AI applications \u2014 such as fraud detection and credit scoring \u2014 safely through a GenAI Digital Sandbox. It includes 26 recommendations covering data privacy, algorithmic fairness, and cybersecurity.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776148852705\"><strong class=\"schema-faq-question\">Q5. What is the Expected Credit Loss (ECL) framework?<\/strong> <p class=\"schema-faq-answer\">The ECL framework (announced Oct 2025) requires banks to <strong>provision for anticipated loan losses before they actually occur<\/strong>, replacing the older &#8220;incurred loss&#8221; model. It aligns Indian banks with global accounting standards (IFRS 9). A four-year glide path is provided until <strong>March 2031<\/strong> for gradual adoption.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776148870540\"><strong class=\"schema-faq-question\">Q6. How can I practise questions on banking reforms for my exam?<\/strong> <p class=\"schema-faq-answer\"><a href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>PracticeMock<\/strong><\/a> offers topic-wise Banking Awareness mock tests updated with all 2025-26 reforms. You can <strong>sign up for free<\/strong> and access hundreds of practice questions with detailed explanations \u2014 all aligned to IBPS, SBI, and RRB exam patterns. No credit card required.<\/p> <\/div> <\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Preparing for banking exams in 2026? Discover the top 10 most important banking reforms from 2025\u201326 with key facts, exam tips, and RBI updates to boost your General Awareness score.<\/p>\n","protected":false},"author":37,"featured_media":196697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[3998],"tags":[],"class_list":["post-196696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-awareness"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top 10 Banking Reforms 2025\u201326 for IBPS, SBI Exams<\/title>\n<meta name=\"description\" content=\"Don\u2019t miss these 10 banking reforms for 2026 exams. Covers repo rate, RBI rules, digital banking &amp; more\u2014highly expected in IBPS &amp; SBI papers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top 10 Banking Reforms 2025\u201326 for IBPS, SBI Exams\" \/>\n<meta property=\"og:description\" content=\"Don\u2019t miss these 10 banking reforms for 2026 exams. 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Covers repo rate, RBI rules, digital banking & more\u2014highly expected in IBPS & SBI papers.","og_url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/","og_site_name":"Practicemock","article_published_time":"2026-04-14T11:10:00+00:00","og_image":[{"width":4938,"height":2775,"url":"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png","type":"image\/png"}],"author":"Vaishnavi Dixit","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Vaishnavi Dixit","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["WebPage","FAQPage"],"@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/","url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/","name":"Top 10 Banking Reforms 2025\u201326 for IBPS, SBI Exams","isPartOf":{"@id":"https:\/\/www.practicemock.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#primaryimage"},"image":{"@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#primaryimage"},"thumbnailUrl":"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png","datePublished":"2026-04-14T11:10:00+00:00","author":{"@id":"https:\/\/www.practicemock.com\/blog\/#\/schema\/person\/3d0614f77140189b92249deae12dc437"},"description":"Don\u2019t miss these 10 banking reforms for 2026 exams. 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Which banking reforms are most important for IBPS PO \/ SBI PO 2026?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The top priorities are the <strong>Banking Laws (Amendment) Act 2025<\/strong>, the <strong>repo rate at 5.25%<\/strong>, the <strong>Master Directions consolidation (Nov 28, 2025)<\/strong>, and the <strong>new digital banking guidelines (Apr 1, 2026)<\/strong>. These have all been directly in the news and frequently appear in General Awareness sections.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148806006","position":2,"url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148806006","name":"Q2. What is the current repo rate in India as of April 2026?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The current repo rate is <strong>5.25%<\/strong>, held unchanged at the April 6\u20138, 2026 MPC meeting under RBI Governor <strong>Sanjay Malhotra<\/strong>. The RBI cut rates by a total of 125 basis points during 2025, starting from 6.50%. The SDF rate is 5.00% and the MSF\/Bank Rate is 5.50%.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148820455","position":3,"url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148820455","name":"Q3. What does the Banking Laws (Amendment) Act, 2025 change?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"It amends five acts including the RBI Act (1934) and the Banking Regulation Act (1949). Key changes include: allowing up to <strong>4 nominees per bank account<\/strong>, strengthening depositor protection, improving PSB audit quality, and extending co-operative bank director tenure to up to 10 years. It was notified on <strong>April 15, 2025<\/strong> and rolled out in stages from August 1, 2025.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148838006","position":4,"url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148838006","name":"Q4. What is RBI's FREE-AI framework?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":" <strong>FREE-AI<\/strong> stands for <em>Framework for Responsible and Ethical Enablement of Artificial Intelligence<\/em>. Launched by RBI in October 2025, it enables banks and fintechs to test AI applications \u2014 such as fraud detection and credit scoring \u2014 safely through a GenAI Digital Sandbox. It includes 26 recommendations covering data privacy, algorithmic fairness, and cybersecurity.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148852705","position":5,"url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148852705","name":"Q5. What is the Expected Credit Loss (ECL) framework?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The ECL framework (announced Oct 2025) requires banks to <strong>provision for anticipated loan losses before they actually occur<\/strong>, replacing the older \"incurred loss\" model. It aligns Indian banks with global accounting standards (IFRS 9). A four-year glide path is provided until <strong>March 2031<\/strong> for gradual adoption.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148870540","position":6,"url":"https:\/\/www.practicemock.com\/blog\/top-10-banking-reforms-2025-26-ibps-sbi-exams\/#faq-question-1776148870540","name":"Q6. How can I practise questions on banking reforms for my exam?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"<a href=\"https:\/\/www.practicemock.com\/?ref= 15435\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>PracticeMock<\/strong><\/a> offers topic-wise Banking Awareness mock tests updated with all 2025-26 reforms. You can <strong>sign up for free<\/strong> and access hundreds of practice questions with detailed explanations \u2014 all aligned to IBPS, SBI, and RRB exam patterns. No credit card required.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"uagb_featured_image_src":{"full":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",4938,2775,false],"thumbnail":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",150,84,false],"medium":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",300,169,false],"medium_large":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",640,360,false],"large":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",640,360,false],"1536x1536":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",1536,863,false],"2048x2048":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",2048,1151,false],"web-stories-poster-portrait":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",640,360,false],"web-stories-publisher-logo":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",96,54,false],"web-stories-thumbnail":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2026\/04\/blog.png",150,84,false]},"uagb_author_info":{"display_name":"Vaishnavi Dixit","author_link":"https:\/\/www.practicemock.com\/blog\/author\/vaishnavi-dixitpracticemock-com\/"},"uagb_comment_info":1,"uagb_excerpt":"Preparing for banking exams in 2026? Discover the top 10 most important banking reforms from 2025\u201326 with key facts, exam tips, and RBI updates to boost your General Awareness score.","_links":{"self":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/196696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/comments?post=196696"}],"version-history":[{"count":0,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/196696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media\/196697"}],"wp:attachment":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media?parent=196696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/categories?post=196696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/tags?post=196696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}