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On June 15, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Third Amendment Directions, 2026, amending its master directions governing how commercial banks undertake financial services activities. The amendment, issued under Section 35A of the Banking Regulation Act, 1949, will come into effect on January 1, 2027. The RBI reviewed extant regulations governing agency business and referral services and introduced a revised regulatory framework to strengthen oversight. Key amendments include clarified definitions of agency business and referral services. Agency business now explicitly covers arrangements where banks or group entities act as agents of third-party product or service providers (TPPSPs) without risk participation, including marketing, sales, promotion, and after-sale services. Referral services are redefined to permit banks to refer customers to TPPSPs only where the bank does not undertake continued customer interactions such as distribution, grievance redressal, or post-sales services. The amendment restricts both agency business and referral arrangements to regulated financial products and services falling under the frameworks of the RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), and overseas regulatory authorities. Banks must ensure compliance with the Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Directions, 2025. Under agency business, banks must operate on a fee basis without risk participation and must explicitly disclose this to customers. Under referral arrangements, banks must ensure their role remains purely referral in nature, with clear disclaimers to customers, and must publish lists of TPPSPs on their digital channels to ensure transparency. Commercial banks must implement these amended directions by January 1, 2027.