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RBI Mandates Key Fact Statement for All Retail Loans.

Banking & Finance | Dated: 25 Feb 2026

To enhance transparency and empower borrowers, the Reserve Bank of India (RBI) has mandated that all regulated entities must provide a Key Fact Statement (KFS) to customers for all retail and MSME loans. The KFS will detail the exact Annual Percentage Rate (APR) and recovery agent policies.

🎯 Key Highlights:

  • The directive applies to all commercial banks, cooperative banks, and NBFCs.
  • The KFS must be provided in a language understood by the borrower.
  • Any fees not mentioned in the KFS cannot be charged to the customer.

💡 Other Important Facts:

  • Mandate: Key Fact Statement.
  • Sector: Retail & MSME Loans.
  • Regulator: RBI.

📚 Test Your Knowledge:

The RBI has recently mandated the provision of a Key Fact Statement (KFS) primarily for which categories of loans?

Correct Answer: Retail and MSME Loans

🚀 Quick Recap:

About RBI Directives

  • Governor - Shaktikanta Das
  • Focus - Consumer Protection