Executive Summary On March 10, 2026, the Reserve Bank of India (RBI) issued seven Amendment Directions modifying the capital computation and concentration norms across various regulated entities. The primary objective is to clarify the components of Owned Fund / Tier 1 Capital—specifically allowing the inclusion of quarterly profits under strict audit conditions—and to mandate the […]
Objective: To impart clarity on the Counterparty Credit Risk (CCR) framework and align the add-on factors for the computation of Potential Future Exposure (PFE) under the Current Exposure Method (CEM) with the Basel Committee on Banking Supervision (BCBS) international guidelines. 1. Commercial Banks Applicable Entity: All Commercial Banks (excluding Local Area Banks and Regional Rural
1. Commercial Banks – Amendment Directions Applicable Entities: All Scheduled Commercial Banks (excluding RRBs). Specific Changes Required: Acquisition Finance: New framework allowing banks to fund Indian non-financial companies for strategic equity acquisitions (up to 75% of value). Bridge Finance: Permitted for an interim period (max 1 year) with a firm repayment plan via equity or
Source: RBI Press Release 2025-2026/2074 Date Issued: February 09, 2026 Effective Date: April 01, 2026 1. Applicable Entities These directions modify the Master Direction – Lending to Micro, Small & Medium Enterprises (MSME) Sector (Updated as on July 23, 2025). Consequently, the amendments are applicable to: All Scheduled Commercial Banks (SCBs) Small Finance Banks (SFBs)
Reserve Bank of India (Priority Sector Lending – Targets and Classification) (Amendment) Directions, 2026 Date of Issue: January 19, 2026 Reference: PR 2025-2026/1947 Executive Summary The Reserve Bank of India has issued amendments to the Master Directions on Priority Sector Lending (PSL) to align with recent regulatory notifications and expand the scope of eligible entities
Date of Issue: January 05, 2026 Subject: Harmonized Framework for Lending to Related Parties & Financial Statement Disclosures. Overview: The Reserve Bank of India has issued 16 distinct Amendment Directions to rationalize and harmonize the norms for “Lending to Related Parties” across all Regulated Entities (REs). These amendments introduce a principle-based framework, stricter governance on
Date of Issue: January 01, 2026 Reference: Press Release 2025-2026/1824 Effective Date: Immediate / April 01, 2026 (for full implementation) Executive Summary The Reserve Bank of India has issued two Amendment Directions to align the regulatory capital framework for NBFCs with the actual risk profile of operational infrastructure projects. The amendments introduce a granular risk-weighting
Date of Issue: December 11, 2025 Reference: Press Release 2025-2026/1684 Subject: Rationalisation of Maintenance of Cash Credit, Current, and Overdraft Accounts The Reserve Bank of India (RBI) has issued final Amendment Directions aimed at rationalising existing norms regarding the opening and operating of Cash Credit (CC), Current Accounts (CA), and Overdraft (OD) accounts. These amendments
Undertaking of Financial Services Date of Issue: December 05, 2025 Objective: To ring-fence core banking businesses from non-core risks, ensure a level playing field, and rationalize the group structure of Regulated Entities (REs). Executive Summary: The Reserve Bank of India has finalized the amendments proposed in the October 2024 Draft Circular. The central mandate is
1. Credit Information Reporting Framework Applicable Entities Commercial Banks, SFBs, LABs, RRBs, UCBs, StCBs, DCCBs, AIFIs, NBFCs, ARCs, and Credit Information Companies (CICs). Core Amendment: Transition from Fortnightly to Weekly Incremental Reporting. Specific Changes Required: Reporting Frequency Cycle: IT systems must be reconfigured to extract and submit credit data on a weekly basis. Data Ingestion
