Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
RBI/2026-27/158 DOR.MRG.REC.No.144/21-01-002/2026-27
June 24, 2026
Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Please refer to Chapter III of the Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 which inter alia specifies the capital requirement on foreign exchange and gold open positions. Upon a review and to ensure consistent implementation across Regional Rural Banks, there is a felt need to amend these instructions.
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) to issue instructions in this regard, the 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 (Regional Rural Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from April 1, 2027.
4. The Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Directions, 2025 are amended as provided below.
(i) Sr. No. V in the Table under paragraph 15(1) shall be substituted by the following, namely:–
“
| V | Market Risk on Net Open Position (applicable to on balance sheet and off balance sheet items) Notes: (i) An RRB may refer to paragraph 15(6) below for calculation of Net Open Position. (ii) Risk weights on Net Open Position from foreign exchange positions would be applicable only to RRBs which are Authorised Dealers. Other RRBs may calculate the risk weights on Net Open Position by considering only the Net Open Position from gold. | 100 |
”.
(ii) A new paragraph 15(6) shall be inserted after paragraph 15(5), namely:–
“15(6) Computation of Net Open Position for Foreign Exchange Risk
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