Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026

RBI/2025-26/238
DOR.MRG.REC.No.433/21-01-002/2025-26

March 10, 2026

Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
 

Please refer to paragraph 85 on ‘Treatment of total Counterparty Credit Risk’ of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025. It has been decided to amend these Directions to provide greater clarity and to largely align them with international standards.
 

2. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (RBI) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
 

3. (i) These instructions shall be called the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026.

(ii) These Amendment Directions shall come into effect from the date of issue.
 

4. The Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025, are amended as provided below.

4.1. In paragraph 85(1), the following note shall be inserted in the end, namely: –

“Note: For computation of capital requirement on a consolidated basis, a bank shall include CCR exposures of all entities required to be consolidated in terms of Section B ‘Scope of application of capital adequacy framework’ under Chapter II of these Directions.”.

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